Opened in Asia at Y81.26 after a lacklustre NY session that ranged Y81.21-45, and slipped to Y81.17 in early trade this morning following a smaller than expected Japanese trade deficit. A Xinhua article on the PBOC possibly boosting liquidity and buying from Japanese banks and a US leveraged fund led a bounce to Y81.55, before exporters surfaced and led a small dip to settle back around Y81.40. Buy stops are now in place on a break up through Y81.60 ahead of offers at Y81.80/00 and more stops above. Bids are seen at Y81.20/25. EUR/JPY picked up from early lows of Y106.53 to Y107.00 before easing off to Y106.70. Stops are placed on a break of Y107.00 with more through Y107.50. AUD/JPY saw Toshin demand lead a rally to Y84.53 from Y84.15 before easing back to Y84.26. Large offers remain in place from Y84.80/00. BOJ’s Shirakawa reiterated the BOJ commitment to continue its powerful monetary easing and asset purchases in order to meet its 1% inflation target.
EasyForexNews Research Team