Opened in Asia at Y80.89 after trading a bland Y80.79-81.13 range yesterday with the pair still bracketed by exporters offers above Y81.10 and talk of large semi-official bids lurking down at Y80.50/60. Asia has had another relatively quiet session running into the weekend with the dollar edging up on cross buying and a failed N.Korean missile launch. The move tripped stops up through Y81.15 to Y81.20 stalling ahead of further large supply reported from Y81.25. EUR/JPY pushed up on early demand to Y107.10 from lows of Y106.61, only to later fall back on the weaker than expected Chinese GDP data to Y106.60. Stops are now seen up through Y107.50 and down through Y106.50. AUD/JPY tumbled from highs of Y84.81 to Y84.14 on the GDP release, the move compounded by heavy AUD/NZD sales. GBP/JPY rallied to Y129.58 before falling back to Y129.08to later settle around Y129.20. BOJ’s Miyao proposed increasing JGB buying by a further Y5trln to realize potential demand such as capex, and boost understanding of BOJ policy.
EasyForexNews Research Team