Gapped down at the open in Asia at Y76.87 from Y76.96 NY close as weekend IMF and other EUR negative reports weighed on the EUR/JPY. Trading conditions were thin with Japan observing a “coming-of -age” holiday. USD traded down to Y76.79 led by cross sales which tripped stops down through Y99.70 to a low of Y97.28 before short covering led a bounce back to Y97.76. The short covering assisted the USD back up to Y77.01, before settling around Y76.90/00. Solid exporter offers start from Y77.25/30 ahead of stops up through Y77.40. There are a swathe of Japanese/real money bids, including semi-official left ahead of Y76.50. EUR/JPY remains under pressure with traders now eyeing the Dec 2000 lows of Y96.75 as the next target. AUD/JPY also gapped lower at Y78.38 from a NY close of Y78.71, but pushed up to Y78.60 on strong AUD housing data before falling back on weaker AUD retail sales through Y78.35/40 stops to Y78.09. The cross later balancing around Y78.25. GBP/JPY traded down to Y118.27 from Y118.71, but bounced back later to settle around Y118.60/65.
EasyForexNews Research Team