There were some big moves in the crosses overnight with the GBP falling after disappointing economic data, USD/CAD trying to break above a weekly trend-line resistance level and heavy selling of the CHF by some large hedge funds. The USD fell back in late NY trade after comments from Fed members Bullard and Dudley suggested that there will be little or no mention of ‘tapering’ in tonight’s Congress testimony from My Bernanke.

Today’s main risk event in Asia will be the BOJ policy decision but no surprises are expected and minor Australian consumer confidence data is also unlikely to have any lasting impact.

The EUR made some decent gains on virtually all of the major crosses and this helped EUR/USD to regain 1.2900. The short-term down-trend remains in control and we can expect extended range trading between 1.2840/1.2940 ahead of the Fed chairman’s appearance.

EUR/CHF took out recent short-term highs at 1.2540 and the next big level to watch there is at the January highs of 1.2565.

Cable fell to touch the 61.8% retracement of the 5-wave up-move from 1.4830 to 1.5600 and this is looming as an important support point.

AUD/USD is consolidating recent losses and with hourly support now forming at .9750, a more significant retracement towards .9920 does look feasible.

There was a lot of focus overnight also on USD/CAD, which tried to take out a weekly trendline near 1.0310 but only managed a marginal break. The pair fell back after the comments from the Fed duo.

Good luck today.