Opened in Asia at Y82.32 and edged up to Y82.43 ahead of the BOJ announcement, but continues to be capped by exporter supply, despite waning concerns over China’s growth after weekend trade deficit data, and some optimism that the BOJ might ease further. This proved not to be the case with the Central Bank leaving rates on hold and the asset buying program at Y65 trillion. Dollar subsequently crashed off to lows of Y81.97 before encountering some solid bids. There is talk of stops now on a break down of Y81.90 ahead of bids at Y81.50/55. Offers start from Y82.45/50 ahead of stops at Y82.65 and Y82.75 ahead of a reported Y83.00 barrier. Further stops are placed on a break of the barrier. EUR/JPY picked up to Y108.66 from Y108.19, but collapsed to Y107.89 on the BOJ announcement before edging back up cautiously through Y108.00. AUD/JPY made early highs of Y87.04 from Y86.50 but then fell back through bids at Y86.60 to Y86.42.
EasyForexNews Research Team