USD/JPY and other JPY pairs did little again today in Asia. The initial bias was up with USD/JPY trading up from 117.75 or so to the 117.90 level, only to come off later on offers ahead of 118.00. The Tokyo fix saw a balance in supply and demand and USD/JPY held for most of the morning in a 117.75-85 range. A tick up to 118.00 was seen later as specs eyed topside stops.
However, offers around this level, at 118.20 and ahead of presumed option barriers at 118.50 look heavy enough to stymie further tests up despite the talk of stops above each of these levels. Bids are seen heavy from 117.50 and trail down to 117.20 and 117.00 with light stops eyed below each of these levels as well. JPY cross were mostly bid.
EUR/JPY traded up early with USD/JPY from 157.35 or so to 157.75. It edged back later. GBP/JPY, AUD/JPY and NZD/JPY were bid up early on continuing carry trade demand, eclipsing overnight highs. Holidays taken by European players, some extending into next week, look to favoring interest rate plays. This is especially the case with AUD and GBP ahead of interest rate decisions tomorrow and Thursday.
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