Opened at Y80.00 after seeing lows of Y79.85 in NY following strong 7yr treasury auctions, but recovering on the back of strong real money and leveraged demand in the EUR/JPY which sparked a wave of short covering. The USD move steadily higher in asia on the back of importer, investor demand and was bolstered by a jump higher in EUR/JPY after taking out resistance at the 200 day MA of Y107.09 and tripping stops. Dollar ran up to Y80.38, and the cross pushed up to Y107.50 from Y106.85 taking out stops through Y107.10. AUD/JPY was another major driver of the move higher, opening at Y85.73 and after a brief dip to Y85.67, saw some aggressive retail Tokyo demand which hauled the pair up to Y86.33. The move was heightened by AUD/USD which gathered a head of steam on the back of hawkish comments from the RBA’s Stevens and liquidation of EUR/USD shorts. Sterling-yen tracked the dollar move as cable remained sidelined, rising to 126.56 from Y125.81. USD/JPY has strong offers ahead of a Y80.50 barrier with stops just above. Bids are seen at Y79.90/00 with some stops building down through Y79.85.
EasyForexNews Research Team