Opened in Asia at Y80.86 after lows in Europe of Y80.57 with pressure absorbed yesterday by talk of semi-official bids in the Y80.50/60 zone which curtailed further attempts to push the pair lower. Light fixing and proprietary account demand, allied to buying from Japanese names in the EUR/JPY following dovish comments from Fed’s Yellen led the USD higher this morning to Y81.07 before exporter offers turned the tide with a drift back to Y80.84. EUR/JPY ran up to Y106.33 from Y105.96. AUD/JPY was the main mover, leaping from early lows of Y83.27 to Y84.03 on very strong Aussie employment data which showed a rise of 44k jobs against estimates of just 4k. Comments from BOJ’s Shirakawa briefly buoyed the yen complex but flow data from the MOF reporting recent large scale sales of foreign bonds from Japanese investors negated sentiment. GBP/JPY edged up to Y129.02 from Y128.57 but later eased back to Y128.75. USD offers remain from Y81.00/10 from a host of names including exporters with buy stops above through Y81.20. Bids remain in
the Y80.50/60 area from sovereigns, importers and semi-officials.
EasyForexNews Research Team