Opened in Asia at Y3.39 after trading down from early highs of Y84.10 in NY to Y83.30 on the back of a reversal lower in US treasury yields. Asia this morning has seen the pair largely at the mercy of cross moves. Early EUR/JPY demand lead the dollar up to Y83.47 before a surprise Japanese trade surplus caught the market wrong footed and led a fall to Y83.14. The pair the ran into very large demand which reversed the move back to the highs. Further cross sales on the back of a weaker China Flash PMI led another bout of selling to Y83.15 before steadying around Y83.30. EUR/JPY dipped to Y109.89 from Y110.30 only to bounce to Y110.43. The China PMI then led another bout of selling to Y110.00. AUD/JPYcontinued to bear the brunt of the AUD/USD weakness of the last 48 hours, crashing from Y87.40 to Y86.37 as AUD stops were tripped through $1.0450 and $1.0400. GBP/JPY traded a Y132.03-51 range settling later in the session around Y132.20. Bids are in place from Y83.15 down to Y83.00 with stops just below and again through Y82.85. Offers start from Y83.40/50 up to Y84.00.
EasyForexNews Research Team