USD/JPY and the JPY crosses marked time as the G7 meetinggot underway. There was some early nervousness in the wake of a large sell orderin GBP/JPY. The interest forced USD/JPY from the 121.50 area back into 121.25 and sent EUR/JPY 70 pips lower from 158.35 down to 157.65.
JPY continued its familiar theme once the order was filled, with US investment house demand for EUR/JPY and Japanese demand for USD/JPY seeing tentative upside bias. EUR/JPY recaptured 158.00 and USD/JPY moved on 121.50. An unnamed European official claimed there was nothing G7 could do about JPY and it was only Japan that couldaddress weakness. JPY weakened on the news, with USD/JPY trading up to 121.56 and EUR/JPY trading up to 158.20.
Both pairs were unable to sustain gains, with the market drawing the conclusion that Japan could come under pressure behind closed doors even if the communique did not specifically mention JPY. Pullbacks in both pairs are limited, with USD/JPY spending the remainder of the session close to 121.50 and EUR/JPY hovering around the 158.00 area. Choppy price actionwill continue while players wait for any concrete news from the G7.
No comments:
Post a Comment