EUR/USD is seen slightly top heavy after EUR/JPY buying pushed the pair up in late NY trading. Selling interest in the 0.8580-0.8600 area is likely to check upward momentum, while sentiment toward the pair remains cautiously bearish amid indications euro-zone economic growth is slowing: BBK council member Kotz reportedly said Friday that he didn't exclude the possibility of a German recession.

Though sentiment toward USD/JPY remains bullish, the pair is likely to face options-related and exporter selling pressure in the high 124s, with support seen in the 123.80-90 area. The LDP's victory in Sunday's Tokyo local election has had no immediate impact on JPY. USD/JPY currently at 124.35.