Dollar-yen closed in NY at Y78.38, having corrected back from its post BOJ easing announcement react high of Y79.22 to Y78.25 after reported stops through Y78.50-30 were triggered. Rate held steady in early Asia with trade contained by Y78.35/46 before sales of Aussie-yen weighed on the pair. Euro-yen, which had corrected off its post BOJ high of Y103.44 to Y102.12, opened Asia around Y102.25. The Aussie-yen sales prompted traders to target euro-yen stops through Y102.10-00, the triggering of which provided the added downside momentum to take rate to extended lows of Y101.37. This move pressed dollar-yen through Y78.20, with triggered stops extending this move to Y78.05. Risk bruised overnight by the release of HSBC China flash PMI data, headline slightly above expectation but market focused on the mfg sub index which disappointed, as well as reports that China imports of coal from Australia had eased. Dollar-yen sees a mix of demand into Y78.00, with further stops seen down to Y77.90.
EasyForexNews Research Team