Opened in Asia at Y80.46 and was led higher by EUR/JPY and AUD/JPY demand as risk appetite built following yesterday high closes on the DJIA and S&P ahead of today’s ECB LTRO operations. The pair battled up to highs of Y80.69 before encountering dollar month-end selling and slipping back to Y80.31 in recent trade. EUR/JPY pushed up from early lows of Y108.26 to Y108.73 before easing back to Y108.30 with the dollar fall. AUD/JPY rallied from early lows of Y86.60 as AUD/USD took out stops through $1.0790 an broke back up through $1.0800. The cross leapt up to Y87.20 before falling back with USD/JPY to Y86.87. Japan’s industrial production came in at -1.2% y/y for Jan agst expectations of -1.6%, with Jan PMI falling to 50.5 from 50.7. Both sets of data had no discernible impact on the market. Dollar bids are now seen as strong down at Y80.25 ahead of the Y80.23 tenkan line support. Offers are stacked up above from Y80.70 to Y81.00. EUR/JPY offers lie at Y108.70 up to Y109.00, with traders eyeing a successful LTRO and a possible test of the Y110.00 barrier later.
EasyForexNews Research Team