Opened in Asia at Y76.73 and edged up to Y76.82 in early trade before EUR/JPY and USD sales from real money names combined to push the pair down to Y76.62. EUR/USD failed to maintain a foothold above the Y100 level falling to Y99.84 from Y100.25. Talk of some semi-official bids towards Y76.50/60 so far deterring further falls and leading to some underpinning for EUR/JPY. Further bids are seen layered down to Y76.00. EUR/JPY remains the vulnerable pair, with a break above the Tenkan line at Y100.45 required to alleviate short term pressure but exporter offers are said to be in place ahead of the level. AUD/JPY was also pounded lower as the AUD tracked the EUR/USD fall, from early highs of Y79.72 to Y79.14, exporters again seen in the move. GBP/JPY was relatively stable with small losses to Y119.80 from Y120.20. PM Noda pledged to cooperate closely with BOJ to fight deflation and wants to finalize a draft tax and social reform plans by opening cross party discussions.
EasyForexNews Research Team