Opened in Asia at Y83.40 after highs of Y83.94 on Friday were pared back on poor US CPI, IP data that sparked broad based USD weakness and strong profit taking from leveraged names. After early lows of Y83.36, the USD was pulled higher by cross buying to Y83.57 led by EUR/JPY which finally took out the Y110 barrier and stops through Y110.05/10 to highs of Y110.15. The cross then fell back to Y109.75 taking dollar back down to Y83.36. AUD/JPY built on the Friday break up through Y88.00, opening at Y88.34 and taking out stops through Y88.55 to highs of Y88.64 before dropping back to Y88.30 and later settling around Y88.45. The PBOC fixed the yuan at CNY6.3082 the strongest since Mar9 and trading has been virtually at a standstill since as traders in Tokyo look to tomorrow’s Vernal equinox Day holiday. USD offers now lie at Y83.60 up to Y83.80 with bids at Y83.00/05, stops lie just beneath with more down through Y82.80. EUR/JPY has bids Y109.65/70 with stronger down at Y109.00/10, and stops just below. Offers now lie at Y110.05/15
EasyForexNews Research Team