A quiet session in Asia this morning after the dollar was buffeted by a mixed US Treasury market yesterday, but the pair holding firm despite the dovish Bernanke comments, with sharp rises in yen crosses underpinning the dollar. USD/JPY opened in Asia at Y82.82 and after a brief low of Y82.80 headed higher on investor demand, taking out CTA stops at Y83.00 to highs of Y83.04. Exporter and fixing supply then weighed with the dollar easing back to Y82.80. EUR/JPY saw initial demand from a French name which took the pair from early lows of Y110.61 through offers Y110.70/75 to Y110.93, before exporter sales, model funds and some profit taking after yesterday’s sharp rise, led a fall to Y110.55. AUD/JPY slipped back from Y87.43 to Y87.01. GBP/JPY consolidated yesterday’s strong rise from Y130.75, opening at Y132.28 and rising to Y132.54 before easing back to Y132.17 and settling around Y132.30. Fin Min Azumi stressed vigilance over Germany’s stance on the euro crisis. Dollar offers remain above Y83.00 from exporters; bids lie at Y82.50/60 with stops down through Y82.40. Model offers in EUR/JPY Y110.90/00.
EasyForexNews Research Team