Opened in Asia at Y80.89 and fell back with crosses to Y80.58 in a continuation of risk aversion over concerns on the Greek PSI and some liquidation of carry cross trades. The Nikkei then bounced from an early dip along with EUR/JPY demand from hedge funds which helped USD/JPY back up to Y80.94 after the Tokyo fix. The pair then ran into exporter supply easing to Y80.66. EUR/JPY ran up from lows of Y105.71 through buy stops at Y106.10/15 to Y106.40 before easing back to Y106.00. AUD/JPY opened towards early highs of Y85.44 but slipped to Y84.76 on weaker headline q/q aussie GDP data. Comments that China would boost energy and raw material imports and bids from an asian sovereign then led AUD/USD recovery, and the cross bounced to Y85.37 before settling around Y85.00. Reasonable dollar bids are now seen at Y80.50/60 with some stops below ahead of further bids at Y80.25/30 and more stops at Y80.20. Offers remain at Y80.90/00. EUR/JPY has offers Y106.40/45 and bids from Y105.65 down to a barrier at Y105.50, with more ahead of a further barrier at Y105.00.
EasyForexNews Research Team