USD/JPY did not do much in Asia with interest low and flows few and far between. Whatever action the market did see was on the back of Nikkei moves. The Nikkei traded weak early, gapping down before a slow grind up. USD/JPY fell from 118.55 to 118.23 on initial Nikkei weakness before recovering along with the index to 118.64. Bids remain from well ahead of 118.00 and offers from well ahead of 119.00. Stops are eyed sub-118.10, 61.8% Fibo retracement of the move up from 116.64-120.48 February 2-11, and 118.00 and topside above 119.00. Jobbing was the name of the game in EUR/JPY too which initially fell to 133.96 before bouncing to 134.78 on almost no volume. Despite the push up, sentiment remains bearish with the EU and Greece still seen far from any deal. GBP/JPY rallied in sympathy from 181.52 to 182.37, effectively bouncing off its gradually ascending 200-HMA at 181.68. AUD/JPY bounced hard from 91.61 to 92.55 and NZD/JPY from 88.44 to 89.16. The former is still holding below multiple tops just above 93.00. The latter looks to test resistance at its 100-DMA at 89.46 soon.
EUR/USD opened in Asia at 1.1355 after selling off when the EU and Greece could not come to an agreement. Asia saw it down more to 1.1322 before bids returned, perhaps encouraged by comments from Greek FinMin Varoufakis that he could agree to a draft plan drawn up by EU Commissioner Moscovici that would extend the loan agreement. EUR/JPY jobber buyer helped EUR/USD recover later to 1.1364. With the US holiday yesterday, not all have had a chance to fully react to the latest turn of Greek-related events, and fresh EUR downside may be seen as worst-case scenarios including Grexit are priced in. Support remains ahead of 1.1250.
GBP/USD saw a slow grind up from 1.5354 to 1.5381, attempting to make tracks away from yesterday’s 1.5339 low. EUR/GBP see-sawed between 0.7375-92 and ready to trade another leg down.
USD/CHF see-sawed between 0.9315-38. EUR/CHF was in a holding pattern between 1.0561-84 and players still wary of SNB action.
AUD/USD opened in Asia at 0.7778 and dipped to 0.7754 before less dovish-than-expected RBA minutes which threw doubt on another OCR cut in March led to a rally to 0.7809 on short-covering. Offers returned above 0.7800 but more short-covering could be in store when London and New York return.