Opened in Asia at Y77.94 failing to grab a foothold above the Y78.00 level after highs in NY of Y78.04 on the dollar recovery yesterday. Heavy Tokyo cross selling in the AUD/JPY and EUR/JPY led the dollar lower in the fixing with the dollar succumbing to lows of Y77.78 later easing again to Y77.76 despite short covering in EUR/JPY. EUR/JPY was swatted lower from Y100.93 to Y100.35 before talk of Asian sovereign bids in euro-dollar and some profit taking led a recovery back up to Y100.65. AUD/JPY was a similar tale crashing from Y78.76 to Y78.20 before a bounce back to Y78.58, with the AUD/USD continuing to weather the storm from yesterday. GBP/JPY eased from Y120.56 to Y120.08 the move somewhat cushioned by small losses in cable as EUR/GBP tumbled. Focus today will be on key support at Y100.00 in EUR/JPY which could well be threatened by poor Italian auctions.
EasyForexNews Research Team