Opened in Asia at Y82.08 having spent the start of the week under enormous pressure from real money sales in the EUR/JPY which slapped the cross down from Y111.14 through stops at Y110.00 to lows in NY of Y108.95. This dragged dollar lower to Y81.76, but a late rally in equities saw a bounce into the NY close. This morning saw little respite for the dollar with a stop-loss run off early highs of Y82.23 tripping stops through Y82.00 to Y81.87. A second wave then extended down to Y81.55 before lifer, local bank demand and the improved non-mfg China PMI data led a bounce to Y81.98. Stops now rest on a break of Y81.50. EUR/JPY was dragged lower from Y109.57 to Y108.69 on the dollar sell-off but later recovered to Y109.39. AUD/JPY fell on the move from Y85.71 to Y85.03 before bouncing to Y85.60 buoyed by AUD/USD macro and black box buying. Sterling-yen extended Monday’s sharp fall with another dip from Y131.79 to Y130.77, before recovering with the USD/JPY to Y131.52. Fin Min Azumi said Japan must consider further European steps and consult with US and other nations ahead of further IMF contributions.
EasyForexNews Research Team