EUR/USD held back by EUR/JPY slide

Yesterday the immediate reaction to the weaker than forecast US CPI data saw the EUR/USD rise and that rise took it to exactly 1.0900. However, owing to price discovery and the slide in the USD/JPY that followed, the EUR/USD was held back by a corresponding move lower in the EUR/JPY. The EUR/JPY fell back from a high at 175.43 close to 171.50. That cross move completely derailed the upside for the EUR/USD and sent it back towards 1.0850 and hence by the close it was not much changed from where it was before the US CPI data hit the screens. The EUR/USD closed in the US last night at 1.0868. So, if you are a Euro fan and disappointed by that, then look no further than the important influence the EUR/JPY so often has on the EUR/USD these days. Yesterday was as good an example of that as you might ever see. Indeed earlier today reports of the BOJ checking the EUR/JPY sent that cross sliding again, dropping to a new interim low at 171.52 at one stage. It is now rebounding to around 173 as this update is typed. Meantime, the EUR/USD remains caught  the crossfire this morning, currently trading at 1.0866