Opened in Asia at Y80.61 having been skittled lower yesterday following a clear out of EUR/JPY longs and month end flows. The cross fell in Tokyo after failing to take out a Y110.00 barrier (high Y109.96) and ran down through Europe to lows of Y107.19 in early NY trading. The cross later bounced to Y108.00 after the Bundestag approved the Greek debt deal. EUR/JPY has since drifted lower again in Asia to Y107.29 from Y107.99 assisted by heavy AUD/JPY sales, and pulled the dollar lower through stops at Y80.25 to Y80.01 before finding support. The pairs then subsequently bounced back to Y80.39 and Y107.99 assisted by a small upturn in EUR/USD. AUD/JPY saw some heavy selling from Japanese names, falling to Y86.11 from Y86.70, but has since recovered to Y86.62 as AUD/USD also holds firm. There is talk now of stops building in USD/JPY down through Y79.95, with initial wave of offers sitting up at Y80.60/65. Japanese January retail sales came in above expectations at +1.9% y/y against a consensus of -0.2%, but the Nikkei still slipped on the session.
EasyForexNews Research Team