The USD JPY got a boost today because of the strong rally in the U.S. equity markets. A combination of friendly events fueled today’s rally which began overnight after European and Asian traders set out to satisfy their appetites for risk by supporting equities.

The New Zealand Dollar fell for the second consecutive day following Monday’s bearish closing price reversal top formation. Wednesday’s decline was blamed on a drop in business confidence, but some traders attribute the weakness to position squaring ahead of tonight’s interest rate decision by the central bank.

U.S. equity markets are called better as tensions have eased regarding Goldman Sachs’ legal problems. Stock traders are also a little more optimistic because of the opening of some air routes in Europe. Technically, all three indices are currently retracing a little more than 50% of the recent decline. This is a key area as the markets are in positions to post secondary lower tops.

A drop in Asian equity markets is leading to spillover selling in the U.S. markets. The follow-through to the downside overnight appears to be a continuation of the sharp break from the high on Friday. Concerns over a credit rating cut in the U.K. and the lack of a bailout plan for Greece are two reasons for the selling pressure.