Opened in Asia at Y81.12 and headed higher from early lows of Y81.08 on general yen selling, led by EUR and AUD cross buying. USD pushed up to Y81.20 on model related buying tied to momentum sales of yen against the KRW, and built steadily higher on EUR/JPY demand, tripping CTA stops through Y81.40 to highs of Y81.52 before settling back around Y81.45. EUR/JPY rally was triggered by talk of Asahi brewery buying Eastern Europe’s StarBev leading the cross up from early lows of Y107.95 to Y108.43. AUD/JPY continues to attract demand from Japanese trust banks amongst others, breaking up through fresh weekly highs to Y87.98 from Y87.59. BOJ Shirakawa announced the bank will continue to ease monetary policy until a consumer inflation of 1% was achieved. Japan’s core CPI fell 0.1%y/y, with unemployment at 4.6% and household spending down 0-2.3% y/y. Rising treasury yields are now supporting the dollar, and stops are seen in place on a break up through Y81.60 ahead of an option barrier at Y82.00. Bids remain in the Y81.00/10 region and extend down to Y80.85.
EasyForexNews Research Team