Opened in Asia at Y82.58 having suffered a sharp fall from Y83.47 to Y82.33 yesterday as the dollar wilted under the strain of some heavy cross sales following weak PMI data from China and Europe. weak short positions were squeezed out this morning in Tokyo as fixing demand led a recovery from early lows of Y82.51 to Y82.95. The dollar move hauled EUR/JPY higher from Y108.89 to Y109.48 as EUR/USD remained largely static. The same story applied to AUD/JPY which headed up to Y86.25 from Y85.77 amid some retail buying and talk again of possible Toshin related demand. GBP/JPY rose from Y130.53 to Y131.19. Dollar has now settled mid-range around Y82.75 ahead of the European open. Bids are seen down at Y82.50/55 with stops below ahead of more bids at Y82.30/40 and further stops set on a break of Y82.30 and Y82.00. Offers lie at Y82.90/00 and Y83.15/20. EUR/JPY offers start from Y109.50/60 and Y109.90/00. Some sell stops are now in place down through Y109.00 and Y108.50.
EasyForexNews Research Team