Opened in Asia this morning at Y76.27 after lows in NY of Y76.15, and quickly headed back down to the level again following sales of EUR/JPY and AUD/JPY in the Tokyo fixing, as lower US yields weighed on the pair. Fears of intervention halted further falls after a low of Y76.14. Bids remain in place ahead of Y76.00, and are scattered down below to the November lows of Y75.32. Offers remain in place towards Y76.50 and trail higher. EUR/JPY slipped to Y99.43 from Y99.89 tripping stops enroute through Y99.55 as momentum funds and CTA accounts sold. Offers sit at Y99.90/00. AUD/JPY saw initial Tokyo fixing supply pushing the pair to Y80.74 from Y81.13 but recovered on strong Chinese PMI data Y81.06 to settle around Y80.85. GBP/JPY slipped from Y120.31 to Y119.98 but was cushioned from further falls by a resilient cable, that in turn was buoyed by a softer EUR/GBP. Trading remains cautious as yen strength continues towards Y76.00, with dealers now also primed for any possible fresh intervention from the BOJ.
EasyForexNews Research Team