Opened in Asia at Y77.04 after recovering from lows of Y76.71 in London yesterday on some heavy exporter selling. The USD held firm in Asia this morning after early falls were contained at Y76.99 and built higher with EUR/JPY to Y77.23 tripping some light stops en route through Y77.20. Offers remain layered up to Y77.50 with some further stops mixed in. Bids are now seen from Y77.00 with larger layered down to Y76.60. EUR/JPY opened at Y102.16 and after an early dip to Y101.85 began a steady ascent with the EUR/USD back up to Y102.50, stalling just ahead of stops at Y102.55. More stops are in place on a break of Y102.90 and Y103.00. AUD/JPY slipped from opening highs of Y83.18 to Y82.86, as AUD/USD came under pressure via the EUR cross, but later recovered through the earlier highs to Y83.40. PM Noda stated that JPY strength was putting downward pressure on the economy, and a senior Japanese ruling party official suggested using the Japanese public pension fund to fight the yen rise with a shift into foreign assets from domestic bonds.
EasyForexNews Research Team