Opened in Asia at Y81.55 after trading a Y81.32-73 range in NY but has remained on firm footing this morning as equities rallied and broad based selling of yen underpins the crosses. Dollar headed up post fixing to 10 mth highs of Y81.90 on strong buying from a host of names including exporters, oil names and US banks but has run into strong headwinds protecting an Y82.00 barrier. Stops lie on a break of the level. Bids are now seen towards Y81.50/55. EUR and AUD/JPY crosses also posted strong gains with the euro up to 108.65 from Y108.15 on model, CTA’s and macro fund buying. AUD/JPY blipped lower from early highs of Y86.88 to Y86.63 on poor aussie trade data and a limited reaction to weaker China CPI, but later picked up again with a bounce to Y87.22. GBP/JPY was dragged higher by the yen weakness as cable was largely sidelined, rising from Y129.00 to Y129.58. Fin Min Azumi expects BOJ to take further appropriate action if necessary, saying February’s easing had affected FX and equity markets.
EasyForexNews Research Team