Opened at Y82.90 in Asia and after a small blip up to Y82.97 fell back sharply on cross sales into the fixing amid thin year-end trading. USD tumbled, the move initially on exporter sales before cross flows also clicked in sending the pair to Y82.54, later recovering to Y82.71. Bids remain at Y82.50 with stops below and larger stops from CTA names are seen on a break of Y82.00. Strong offers sit up at Y83.10. AUD/JPY collapsed from early highs of Y86.27 on lack of Toshin talk and chatter of large stops, tripping some through Y86.00 and Y85.60 to lows of Y85.50 before bouncing to Y85.78. Very large CTA stops are now reported on a break down of Y85.00. The cross was also weighed down by reports in the Chinese press of Yuan 2.8bln losses in its large steel making industry. EUR/JPY was hit by Japanese investors falling back from Y110.52 to Y109.97. Stops are now placed on a break of Y109.85. GBP/JPY eased from Y131.85 to Y131.21.
EasyForexNews Research Team