USD/JPY breaks through 118.00

USD/JPY rose from 117.88 through 118.00, to 118.27 in the Asian session. It fell back to 117.99 before legging up more to 118.52 in the afternoon. Broad yen weakness due to recent developments in Japan also helped the pair. The Fed minutes and HSBC China PMI did not affect dollar strength.

EUR/JPY rallied from 148.00 to 148.60.

EUR/USD opened in Asia at 1.2554 after performing very well yesterday. The pair drifted lower early in Asia with USD broadly bid on USD/JPY strength. A low of 1.2530 was seen before bids returned. Fresh EUR/JPY purchases saw it bounce back to about where it started. Consolidate-correct look remain the theme for now after seeing a two-year low of 1.2358 on November 7. Divergent central bank expectations look to limit the topside. Technical resistance is seen at 1.2620-25.

GBP/USD did little in Asia after the leg up last night on less dovish than expected Bank of England minutes, trading a tight 1.5665-88 range. EUR/GBP traded 0.7994-0.8007.

USD/CHF too traded sideways between 0.9570-87. EUR/CHF was flat between 1.2012-16 with the market still on the look-out for possible SNB action ahead of 1.2000.

AUD/USD opened in Asia at 0.8617 and picked up from where it left off, quickly back below 0.8600 on USD/JPY-led USD strength. Trading 0.8593-0.8622 into the China PMI data, it fell to 0.8600 seconds before the soft data, suggesting maybe prior knowledge. A fresh session low of 0.8587 was seen post-release. A bounce to just above 0.8600 was met by fresh sales and a move to 0.8584.

The post USD/JPY breaks through 118.00 appeared first on Forex Circles.

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