Opened in Asia at Y81.55 after trading a Y81.32-73 range in NY but has remained on a firm footing through morning trade as equities rallied and broad based selling of yen underpinned the crosses. USD headed higher post fixing to 10 month highs of Y81.899 on strong buying from a host of names including exporters, oil names and US banks but ran into strong headwinds protecting a well reported Y82.00 barrier. Stops lie on a break of the Y82.10 level. Market reported to be sitting long ahead of today’s key US jobs report, a break of Y82.50 to expose a Y83.00 one touch option that rolls off at 1500GMT ($10mln payout). Bids are now seen towards Y81.50/55. EUR and AUD/JPY crosses also posted strong gains, EUR/JPY up to Y108.65 from Y108.15 on model, CTA’s and macro fund buying, holding back at Y108.20 ahead of NY. AUD/JPY blipped lower from early highs of Y86.88 to Y86.63 but later picked up again with a bounce to Y87.22. Rate trades around Y86.90 ahead of NY.
EasyForexNews Research Team