Opened in Asia this morning at Y81.09 after hitting lows of Y80.60/65 in Europe/NY yesterday, the bounce seen on the back of the Fed’s potential move to buy bonds and press reports via Bloomberg that up to 58% of bondholders had signed up to the debt swap which bolstered the euro and crosses leading the USD/JPY higher. Asia this morning has been relatively quiet, but the dollar was boosted further by much weaker C/A deficit data (see european open), and the Nikkei rise, to highs of Y81.36 before running out of steam and settling back around Y81.25. EUR/JPY opened at Y106.63 and after early lows of Y106.59 headed up to $107.06 on the back of the euro bounce. The yen complex was also weakened by AUD/JPY buying supposedly Uridashi related, as well as strong AUD/USD buying from an ACB and US macro funds. Some suggested talk of a China RRR cut adding to the mix. The AUD/JPY cross picked up from Y85.54 to highs of Y86.22 at the time of writing. Offers in USD/JPY are reported up at Y81.60/70 with sovereign names apparently bidding down towards Y81.00/10.
EasyForexNews Research Team