Opened in Asia this morning at Y81.49,after trading a Y81.20-67 range yesterday, and headed higher into the Tokyo fixing on rumoured Japanese pension fund demand to highs of Y81.86. The USD later pared back to opening levels after the BOJ left rates and asset purchasing unchanged which prompted a round of EUR/JPY and AUD/JPY sales. EUR/JPY pushed up from Y106.80 to Y107.45 assisted by strong Chinese trade data and EUR/USD demand from a UK bank, supposedly on behalf of an Asian sovereign, and some later demand from a US black box fund. AUD/JPY rallied from Y83.93 to Y84.63 on a combination of strong ANZ job data, NAB business sentiment and the China Trades, but fell back after the BOJ announcements to Y84.06 before settling around Y84.10. USD/JPY bids are seen at Y81.40/50 and Y81.20/25, with stops down through Y81.00 and Y81.50. Offers are set from Y81.85 up to a large option expiry at Y82.00, with stops seen on a break. Fin Min Azumi said BOJ will take appropriate measures to boost the economy and that the MOF and BOJ were consulting at various levels.
EasyForexNews Research Team