USD/JPY and other JPY crosses traded on a supportive footing after moving higher in Asia on the back of North Korea's alleged underground nuclear test. USD/JPY and JPY crosses were already bid ahead of the news on the back of revisions to past US payroll numbers out Friday. Speculative accounts, importers and leverage names bought the dip, leaving the pair within a short distance of the 119.29 high ahead of the North American session. Gains have been limited due to decent size offers between 119.30 and 119.50.
Sovereign names, real money accounts and exporters reportedly left good offers, while option protective selling is seen ahead of 119.50 barriers. EUR/JPY traded ahead of 150.00 throughout the European morning after surging up to 150.29. Option protective selling and proprietary names kept the pair within a narrow European range. JPY is expected to remain heavy due to heightened geopolitical risk. USD/JPY has scope for gains, while EUR/JPY may trade nervously ahead of the 17:00GMT Eurozone finance ministers meeting. There are concerns that EUR/JPY levels may be mentioned and likely to be a restrictive factor.
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