Opened in Asia at Y76.89 and edged down from early highs of Y76.96 in thin trading due to a Tokyo holiday, to lows of Y76.82. Main interest was seen in EUR/JPY which saw some risk demand as Asian bourses picked up, leading to a EUR/USD rally and a rise in the cross from early lows of Y99.42 to Y99.82. Order books are generally empty but expect more jaw-boning from BOJ/MOF officials now as the EUR/JPY remains under Y100 and dollar-yen looks to revisit last year’s lows. There have been some whisperings of semi-official buying interest under Y77.00 but so far these have failed to appear, with next level of technical support seen towards Y76.55. Resistance initially is seen towards the 100 day MA currently sitting around Y77.18. AUD/JPY made strong gains as AUD/USD was driven higher on strong PMI data; the cross jumping to Y79.14 from early lows of Y78.68.
EasyForexNews Research Team