Dollar opened in Asia at Y81.15 this morning after a strong rally yesterday following Fed Bernanke’s testimony which dampened any hopes of QE3. The pair rallied strongly yesterday from near the Ichimoku tenkan line down with a low of Y80.25. Tokyo names and a firmer euro helped a rise to Y81.40 in early trade before exporters and investors seized on the opportunity to unload some longs, pushing the pair back down through Y81.00 to Y80.84. Bids have now surfaced and the dollar is settling around Y80.90 ahead of Europe. EUR/JPY was relatively tame slipping back from early highs of Y108.46 to Y107.89 before holding around Y108.00. AUD/JPY built higher from Y87.02 to Y87.46 with buying from Japanese trust banks and assisted by a strong AUD on the back of better Chinese PMI data but later eased back to Y86.94 as Aussie Q4 Capex data and building approvals stemmed the rally, but picked up again later to Y87.20. Dollar support is seen towards Y80.80/85 and Y80.45/50, with firm offers sitting up at Y81.50 and buy stops above.
EasyForexNews Research Team