Opened in Asia at Y78.43 having finally broken higher in yesterday’s session through the 200 day MA at Y78.04. The USD topped out at Y78.54 in NY and saw steady buying throughout Tuesday from macro funds. The pair has headed higher again in Asia this morning after early lows of Y78.35, with strong buying from Japanese importers and lifers following comments from China PBOC’s Zhou. The move prompted a strong rally in the crosses and this led the USD/JPY higher again triggering some stops through Y78.55 to Y78.67, before settling back around Y78.45. AUD/JPY powered up through a Y84.00 barrier from lows of Y83.75 to Y84.41 hitting fresh 6 month highs, and EUR/JPY jumped from Y102.87 through stops at Y103.30 to Y103.48. GBP/JPY was also pulled up from Y122.95 to Y123.50. Dollar bids are now firm from around Y78.30 down to Y78.00 and offers are now stacking up again towards Y79.00 which holds option interest, with stops set on a break of the level. EUR/JPY offers remain at Y103.50, with stops now down through Y103.00. AUD/JPY has offers ahead of Y85.00 with stops above.
EasyForexNews Research Team