Opened with a small gap higher in Asia at Y79.60 having closed last week around Y79.55 in NY. Risk appetite returned with the market now eyeing the Brussels meeting later today which is expected to agree the 2nd Greek bailout package. Saturday’s RRR cut from the PBOC also added to the risk sentiment. Importer demand triggered some stops and along with strong euro-yen macro demand, took the pair to highs of Y79.89 before encountering exporter offers. A bout of broad profit taking from a different macro name in the yen complex then led a drift back to Y79.43. Offers remain ahead of a barrier at Y80.00 with stops set on a break. EUR/JPY opened at Y105.07 from a NY close of Y104.53 and after a brief low of Y104.82 was hauled higher by macro buying to Y105.75 before falling back to Y104.93. AUD/JPY opened with a gap at Y85.84 from Y85.17 in NY, and stormed up to Y86.35, before succumbing to profit taking and slipping back to Y85.62 as a large Asian macro seller sold AUD/USD above $1.0790. Japan’s Jan trade deficit came in the largest on record at 1.475 trillion yen.
EasyForexNews Research Team