JPY posted broad gains in the European morning session. USD/JPY made gradual progress on the downside after a US investment house sold a good clip from 115.20 in Asia. A lack of decent demand out of Asia fueled early European selling by stale longs.
The US name featured heavily reportedly selling on behalf of an equity fund, while Swiss and German accounts added to interest after stops and bids were filled between 114.90 and 114.70. Hawkish remarks by BOJ Mizuho added pressure, along with decent cross-JPY selling. He said that Japan could raise rates now. Japanese selling via AUD/JPY was noted and sizeable GBP/JPY interest was pushed through a UK clearer, following aggressive Swiss account interest via EUR/JPY in late Asia/early European trade.
Both USD/JPY and EUR/JPY hover over interesting levels, with the former looking towards 114.50 barriers and stops below and the latter just ahead of 152.50, where good size stops are tipped. The US market will focus on November Challenger layoffs and productivity and unit labour costs. The European morning was largely a JPY story but this data may be enough to push to dollar towards key levels.
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