USD/JPY closed in NY at Y78.33 after getting squeezed to a high of Y78.41 in this session after failing earlier in the day to clear back under Y78.00 (Europe low Mon Y77.988). Trade in Asia was confined to a tight Y78.28-40 range, traders noting decent demand in place between Y78.10/00, one referring to them as ‘stealth bids’. Offers remain into Y78.50 with stops above. FinMin Azumi would not comment that today’s G7 teleconference would produce a statement. Traders remain wary of an intervention threat and will be watching for rhetoric from Japanese officials. Thursday’s testimony from the Fed’s Bernanke remains key on the week with market looking for any hints, or not, for QE3. EUR/JPY closed in NY at Y97.926, and after an initial dip to Y97.87 pushed up to a session high of Y98.27 on euro strength and USD/JPY consolidation.
EasyForexNews Research Team