Opened in Asia at Y83.73 and came under pressure from the start on exporter sales, but the move was cushioned by demand in EUR/JPY into the Tokyo fix which pulled the dollar back up from a fall to Y83.53 with the pair recovering to Y83.74. EUR/JPY jumped from early lows of Y110.63 on speculative buying, eventually grinding through French bank defence of the Y111.00 barrier, tripping stops to 5 month highs of Y111.15. The cross later settled around Y111.00. GBP/JPY edged up from Y132.69 to Y133.04. AUD/JPY retook the Y88.00 level after early lows of Y87.58, punching higher to Y88.05 on AUD/USD short covering. The pair later slipped back to Y87.69 as aussie fell back on an article in the “Australian” newspaper which stated that the Australian growth rate was set to slow as demand for mining and energy cools. Dollar offers remain towards Y83.80 with bids from Japanese names at Y83.40/50 and stops down through Y83.30. Larger bids sit ahead of Y83.00 with massive stops reported on a break down of Y82.80. EUR/JPY has barriers at Y111.50 and sell stops down through Y110.50.
EasyForexNews Research Team