Opened in Asia at Y80.67 after sharp falls yesterday from Asian highs of Y81.86 to lows of Y80.65 in NY on widespread yen demand and heavy sales in EUR/JPY on the back of Spanish debt concerns. USD came under early pressure this morning in a continuation of yesterday’s fall, but talk of sovereign/semi-official bids in the Y80.50/60 zone have so far curtailed any further falls with a low of Y80.60. Bids from Japanese funds then surfaced in the crosses and talk in the Asahi Shimbun hinting at possible further easing from the BOJ led a recovery in the yen complex. The pair pulled back up to Y80.83 before settling around Y80.75. AUD/JPY recovered from lows of Y82.49 to Y83.10 on Japanese trust buying, assisted by strong Aussie housing finance data, and remains firm around Y83.00. EUR/JPY edged up from earlier lows of Y105.45 to Y105.80, but faces a barrage of offers from Y106.00. USD bids lie at Y80.50/60 with offers from funds, real money and exporters lined up at Y81.00/05. FinMin Azumi stated MOF wouldn’t react radically to every move in FX currency markets.
EasyForexNews Research Team