A quiet session to open the week for the dollar-yen as the pair continues to be protected from further falls by semi-official bids in the Y80.50/60 zone but exporter offers and EUR/JPY sales remain to cap moves above Y81.00. Eurozone debt concerns, Moody’s review talk of several major European institutions and China’s recent widening of the Yuan band have left the market in a risk=off environment. USD opened around Y80.90 and traded a quiet Y80.85-00 range with the real action coming in the crosses. EUR/JPY was pushed sharply lower with the EUR/USD, the cross falling from Y105.84 through stops in the Y105.45/50 zone to lows of Y105.24. AUD/JPY plunged from Y84.01 to Y83.38 and GBP/JPY eased back from Y128.37 to Y127.93. More EUR/JPY stops are touted on a break of Y105.00 with little in the way of support below ahead of technical Fibonacci support around Y104.20 and the 100 day MA at Y104.10. FinMin Azumi said no decision has been made as yet on Japan’s IMF contributions, but discussions are continuing with other nations over the matter.
EasyForexNews Research Team