Another non-event in Asia for the JPY complex but the USD maintained it’s hold above Y77.00 overnight after stronger ADP payroll data and a rise in the US non-manufacturing ISM PMI, which led to a firmer US dollar across the boards and gave US equities a lift. Asian traders sat on the sidelines ahead of this afternoon’s US non-farm payroll data, Monday’s bank holiday in Japan and the scheduled meeting between Merkel and Sarkozy. Dollar-yen was held into a Y77.07-26 range with the cross equally tight through Y98.58-79. AUD/JPY slipped from Y79.21 to Y78.86 and GBP/JPY edged up to Y119.70 from Y119.44. Japan’s Fin Min Azumi told markets that the US, Japan and UK all wanted to see more activity from Europe in tackling the current debt crisis and for Europe to establish a crisis firewall. USD key resistance is at Y77.40/50 with exporter offers ahead from Y77.25, but bids are now seen in the Y77.00/10 area as well from US names.
EasyForexNews Research Team