Opened in Asia at Y76.68 and remains under pressure after last Wednesday’s bounce to Y78.28 had been completely undone into the weekend. Friday’s weak GDP report and expectations of further QE from the Fed causing the damage. Asian markets this morning have been quite with the dollar trading a Y76.65-78 range, with main interest seen in the crosses. EUR/JPY eased with the EUR/USD on Greek PM Papademos’s flat rejection of Germany’s proposal for a European “budget commissioner” which dropped the cross from Y101.45 to Y100.99. AUD/JPY was harder hit as AUD cross profit taking against EUR and GBP led a fall down from Y81.57 to Y81.12. GBP/JPY eased back from Y120.70 to Y120.40. Dollar bids are seen ahead of Y76.50 from semi-officials with usual reiterations from PM Noda that markets were being closely watched and appropriate action would be taken. Stops are said to lie in wait on break of Y76.50. There’s also talk of EUR/JPY stops on a break of Y101.00 but these don’t appear to have been tripped as the pair hit lows of
Y100.99.
EasyForexNews Research Team