Today's session in Asia saw the Yen give back a good deal of yesterday's gains that were made as traders looked for safety when Chinese stocks racked up losses of almost 6% on the day. The effects were brutal for the risk trade, as higher yielding assets collapsed amidst traders buying the perceived safety of the Yen and US Dollar. Today's markets looked to find balance as traders took profits from the Yen's monthly highs yesterday and equities across Asia found firmer footing although in most cases still in the red. EUR/JPY was a great pair to hitch your wagon onto today as it quickly forgot early lows near the 132.80 area and topped out just short of 134.20. GBP/JPY blasted from the 154.00 levels to 155.70, AUD/JPY moved from 77.40 to 78.50, and NZD/JPY cruised to 63.80 from earlier 62.90 levels. Most traders felt the correction was needed considering yesterdays perceived panic over buying of the yen. USD/JPY once again poked above the all familiar 95.00 after starting the session closer to 94.40.

The risk assets that were so aggressively sold yesterday were eagerly bought back today, as the Euro and Pound both showed some strength against the greenback. The Euro pushed as high as 1.4130 after beginning the day near 1.4065. The other winners of the day were the high yielding currencies of the Pacific, with the AUD/USD gaining back almost 70 pips to 0.8260ish and the NZD/USD gaining back almost 50 pips to 0.6715. USD/CHF and USD/CAD conversely were moderately softer.

Nothing too intimidating looking ahead as far as data is concerned, but the UK CPI and German ZEW without doubt can stir up unsuspecting markets. Tomorrow brings US PPI and housing data including building permits and housing starts.