USD/JPY closed in NY at Y78.75 having been shoved to a recovery high of Y78.97 as market reacted to FinMin Azumi’s post teleconference comments suggesting he had been given the go ahead to counter ‘extreme FX moves’. Rate corrected back to Y78.56 before settling between Y78.70/80 into the close. Rate initially marked overnight lows at Y78.60 into Asia, as traders reacted to a generally softer USD, but rate quickly picked up fresh demand that returned rate toward Tuesday’s high, topping out at Y97.95 before settling back on Y78.80. Offers remain on approach to Y79.00 with bids seen between Y78.60/50. Traders suggest Y77.50 is now key level to any triggered intervention. EUR/JPY edged up from early lows at Y97.94 to Y98.78, the cross taking its lead from AUD/JPY as this rate reacted to the release of strong Australian GDP data. EUR/JPY has settled back on Y98.50 into Europe. No further comments from Japanese officials following Azumi Tuesday. ECB rate decision and Draghi press conference today’s interest, but Thursday Bernanke testimony overshadows.
EasyForexNews Research Team