Opened around Y81.25 after closing in NY at Y81.20 and after an initial slip to Y81.22 headed higher on a combination of AUD and EUR cross buying to Y81.67 on corporate month end demand. Profit taking across the board in the yen complex then followed shortly after Japan opened. The pair fell back as option related selling in protection of barriers in EUR/USD at $1.3500 and EUR/JPY at Y110.00, assisted in a push down to Y80.99. Dollar then recovered to Y81.25 before settling around Y81.15. AUD/JPY flushed a barrier at Y87.00 to highs of Y87.48, before AUD/USD sales from a US custodial name headed the pair back down to Y86.45, to later settle around Y86.70. EUR/JPY peaked at Y109.96 on the early demand before falling back to Y108.94 on talk of sales from a US black box fund, although some also link the move to a Yonhap article stating N.Korea had deployed multiple rocket launchers. The cross later recovered to Y109.34. Japan’s Nakao acknowledged Europe’s desire to strengthen the ESM/EFSF war chest, but saw difficulties in predicting when this would actually take place.
EasyForexNews Research Team