Opened in Asia at Y78.93 and has again consolidated previous day’s gains as it pulls well clear of the 200 day MA at Y78.04 broken on Tuesday. Steady buying from importers and model accounts have chewed through a myriad of exporter offers over the last couple of sessions. The pair has again built higher this morning on the back of some Toshin related flows, taking out a Y79.00 barrier just after the Tokyo fixing, and tripping some stops to a high of Y79.18. Large corporate supply ahead of Y79.20 has since led a slip back to Y79.05. The move dragged EUR/JPY up from early lows of Y103.43 to Y104.03 and AUD/JPY to Y85.50 from lows of Y84.67. Profit taking then led a slip back to Y103.75 and Y85.11 respectively. Dollar resistance is now seen towards the Oct31 spike high of Y79.55 seen after the massive BOJ intervention with large stops just above, ahead of further offers towards Y80.00.
EasyForexNews Research Team