USD/JPY back above 116.00

USD/JPY and the JPY crosses were bid in Asia, the latter more than the former on renewed interest in carries. USD/JPY saw a leg up early from 116.42 to 116.79 before falling back. It has since steadied, supported by cross interest and a decent bounce in the Nikkei. Many remained sidelined ahead of Japanese official pronouncements later on delaying next year’s sales tax hike and December 14 snap general elections. Offers remain ahead of 117.00 and trail higher with Japanese exporters in the mix. Stops are eyed above 117.10, 117.06 the post-GDP spike high. Bids are eyed from Japanese importers and offshore specs from 116.40-50 and trail down. EUR/JPY grinded modestly higher from 145.20 to 145.50, tracking its hourly Ichimoku cloud up.

EUR/USD opened in Asia at 1.2450 after selling off overnight on dovish comments from ECB Pres Draghi and other ECB officials. Down a bit more to 1.2442 early as longs continued to be squeezed, buyers returned thereafter and a surge to 1.2476 ensued. Broad USD weakness helped. Consolidation could be the theme over the next few days with short-covering likely to support this market. The upside looks to be contained by contrasting central bank expectations. Tech support is eyed around 1.2400 and resistance between 1.2580-1.2600.

GBP/USD did little in Asia, slightly better bid and consolidating losses to 1.5620 last night between 1.5635-57. EUR/GBP looked slightly better bid between 0.7858-70.

USD/CHF saw a modest push down from 0.9654 to 0.9629 in Asia with USD broadly soggy. EUR/CHF treaded water between 1.2012-15 with the market still on the look-out for SNB action ahead of 1.2000.

AUD/USD opened in Asia at 0.7911. Holding between 0.8699-0.8713 prior to the RBA minutes after the push down to 0.8695 overnight, it grinded up to 0.8733 post-RBA as remaining shorts from yesterday covered positions. AUD/USD eased back a bit later before steadying. AUD/NZD flows helped cap the upside with the cross trading soggy between 1.0973-1.1006.

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