Opened in Asia at Y77.78 after falling back from NY highs of Y78.28, The FOMC brought risk back on to the table as Fed’s Bernanke pledged low rates remaining until 2014 and raised fears of further QE as soon as February which sparked a massive risk rally in the EUR and Gold. The USD fell back sharply after the news broke but has since consolidated in Asia this morning in a Y77.68-84 range. Strong resistance and offers from corporates remain from Y78.00 up towards the NY high which is just short of the 200 day MA currently at Y78.31, but large stops loom just above. Support is now seen towards Y77.50/65. EUR/JPY traded Y101.78-97 after a NY high of Y101.98, with stops said to be in place now on a break of Y102.00. AUD/JPY was stable in a Y82.25/50 range after a strong recovery from NY lows of Y81.62 and looks poised to make stronger gains having broken up through the 200 day MA which it has failed to close above over the last 6mths. GBP/JPY was less flamboyant, but recovered from post FOMC lows of Y121.32 to Y121.85 before consolidating this morning through Y121.61-82.
EasyForexNews Research Team