Opened at Y81.81 after NY highs of Y81.87 on Friday but fell back from Y81.86 in Tokyo on EUR/JPY and AUD/JPY sales profit taking from Japanese names on the recent highs ahead of barriers sitting up at Y82.00 in dollar yen and stiff resistance towards Y88.00 in AUD/JPY. USD drifted back to Y81.39 later in the session after pausing ahead of Y81.50. EUR/JPY opened at Y107.88 hitting early highs of Y108.05 before being sold off through stops at Y107.50 to Y107.41. Further stops now lie on a break of Y107.20. AUD/JPY dropped from early highs of Y87.94 to Y87.17 following comments from China’s Wen at the National People’s Congress which included the government lowering growth prospects in 2012 for Asia’s largest economy as the country seeks to attempt to rebalance it’s economy. Sterling-yen slipped from Y129.67 to Y128.76. Fin Min Azumi said that BOJ easing was timely and had a good impact on markets, and that the govt and BOJ needed to cooperate to fight deflation. Dep Fin Min Igarashi urged caution that sales of foreign reserves might further strengthen the yen.
EasyForexNews Research Team