Opened in Asia at Y77.45 after slipping back yesterday from Y77.81 to lows of Y77.29 in NY. Exporters and custodial names opened the selling in EUR/JPY and AUD/JPY which in turn impacted on the USD. The pair slid to Y77.27 before bouncing back towards Y77.45. Further pressure then executed stops down through Y77.25 and Y77.00 to Y76.90 before a weak bounce to Y77.00. EUR/JPY fell from early highs of Y101.58 to Y101.39 through the Tokyo fix before recovering to Y101.50 only to be sold again, tripping some Y101.00 stops to Y100.77. AUD/JPY suffered a similar fate with a drop from Y82.41 to Y81.65 but continues to hold above the 200 day MA around Y81.49. GBP/JPY was also hit hard from Y121.60 to Y120.54. PM Noda commented that he expected the BOJ to take appropriate action to fight deflation and would work together with them to combat yen strength. The dollar has now given back most of the gains made, following the FOMC statement earlier this week.
EasyForexNews Research Team