Opened in Asia at Y76.34 and saw some month-end demand into the fixing which lifted the pair to Y76.42 and dragged up the other JPY crosses. Demand then ebbed for the USD again and the pair headed lower again through the NY lows of Y76.21 to Y76.18, but any stops that we reportedly set on a break of Y76.20 were absorbed by fresh bids out of Tokyo, with the pair now sitting around the low Y76.20’s. Elsewhere EUR/JPY consolidated the recovery from yesterday’s lows of Y100.00 building steadily to Y100.64 as EUR/USD recovered on renewed optimism sparked by comments from the Greece’s Papademos and another EU officials that a successful deal would be struck this week over the debt swap. AUD/JPY picked up from Y80.71 to Y81.21 as strong exporter month-end demand for AUD/USD lifted the cross, with traders now eyeing the 200 day MA resting at Y81.42. Order wise the USD has stops now set on a break down of Y76.00 ahead of support towards the Oct lows. Markets remain cautious however with no comments from the MOF/BOJ so far today regarding intervention.
EasyForexNews Research Team