The US dollar is sporting a softer profile today. It had initially extended its gains after recovering in North America yesterday. In Japanese candlestick terms the euro and sterling had recorded "shooting stars", in essence opening on their highs and finishing on their lows. Additional profit-taking was seen in Asia, earlier today. The euro was pushed below its 20-day moving average for the first time since Dec 11. Sterling fared better but still extended yesterday's losses. However, in the European morning, both currencies have recovered to move back into yesterday's ranges.
The price action can be attributed to thinning market conditions and the recovery of the yen. Indeed, "sell the rumor buy the fact" gains in the yen, may have pressured the other currencies as cross positions were also unwound. The dollar has stabilized after slipping through the JPY84.20 area to trade below the previous day's low for the first time since Dec 10.