FX Commentary: JPY Slips
JPY eased as bargain hunters position for Wall Street gains. EUR/JPY moved off its 166.85 session lows to trade back in to 167.30 and similar moves are mirrored elsewhere, with GBP/JPY above 211.00 and AUD/JPY recovering the 99.00 handle after hitting 98.70 versus 100.61 Asian session highs.
The move in the crosses enabled USD/JPY to trade back above 108.00, but the pair is still struggling to sustain a move on the 108.30 Asian high and last week’s 108.38 highs above. An overhang of offers from Japanese exporters and Asian fund names is capping gains, along with commodity related selling in crosses such as CAD/JPY, NZD/JPY and AUD/JPY.
USD/JPY should regain fresh upward momentum if it can clear 108.40-50 offers, with the former an exotic option level.