Opened in Asia at Y82.46 and nudged up to Y82.50 before Japanese names and a Major US black box fund sold aggressively taking the pair down to Y82.25. A second wave then targeted the Y82.00 level and a big bid at Y81.95. This was eventually filled tripping large stops through Y81.90 to lows of Y81.83. EUR/JPY was scythed from early highs around Y109.76 to Y109.04 on the move. Japanese lifers then turned the market on its head again catching all wrong footed in EUR/JPY with a bounce back to Y109.89 with the move helping the dollar back up through Y82.00 to Y82.34. AUD/JPY mirrored the dollar move with a fall from Y85.68 to Y84.89 before bouncing to Y85.60. Japan’s long opposer of the sales tax increase Shizuka Kamei is leaving the ruling coalition party which should bolster support for PM Noda. Markets now awaits results of the Toshin and order boards have been largely swept clean by the Asian morning’s turmoil, with the dollar now resting at Y82.00 and EUR/JPY at Y109.40 ahead of the European open.
EasyForexNews Research Team