USD/JPY declines further

USD/JPY fell back to fresh retracement lows on another wave of Japanese exporter sales. Japanese exporters have now been good sellers in Asia 3 straight sessions. Keeping the pressure on from 118.59 Tuesday, they pushed it down another leg from 117.74 early to 117.32. Light stops were tripped sub-117.40 and more are eyed sub-117.20. Larger stops are eyed sub-117.00. Offshore stock market players helped as they pared Nikkei purchases and took off long USD hedges. Expectations of more BoJ ETF and/or J-REIT buys had little impact as the Nikkei fell @1%. There was also talk of BoK intervention, and associated JPY buys could manifest itself later in the session as has often been the case recently. EUR/JPY fell too on long liquidation as well as fresh sales from 147.23 to 146.78. Dealers suggest 147.50 could be the new top with moves up rebuffed ahead of this level this week. GBP/JPY too backed off from 185.90 to 185.21, capped below recent trend highs at 186.10-15. AUD was bid across the board after good CAPEX data with AUD/JPY up from an early low of 100.30 to 100.85 and back towards yesterday’s highs. NZD/JPY was bid alongside, up from 92.35 to 92.89.

EUR/USD opened in Asia at 1.2505 after getting a boost overnight from a slew of weak US data. Sidelined again, it could only manage a 1.2495-1.2512 range. Trading was especially thin ahead of today’s US Thanksgiving holiday. ECB Constancio comments out last night which laid out a road map full-scale QE was counterbalanced by a still, very short market and weak US data last night.

GBP/USD remained bid a la EUR/USD in a relatively tight 1.5778-1.5800 range in Asia. EUR/GBP did not move, holding at 0.7916-18.

USD/CHF treaded water between 0.9609-19 in thin, holiday-affected trading. EUR/CHF went nowhere, holding at 1.2020-24.

AUD/USD opened in Asia at 0.8549. Soft early in reaction to the New York short-covering rally ahead of today’s Thanksgiving holiday and with the memory of yesterday’s London plunge still fresh, it eased to 0.8530 into the CAPEX data release. The better than expected report saw it ratchet up thereafter through stops above 0.8565 to 0.8594. Many now suggest last night’s dip to 0.8480 may have been an outlier and false break-out, and that it could see more upside. In any case, more ranging between 0.85-0.88 looks to be in store for now. The rise in Dalian iron ore futures and rallies against NZD and EUR were supportive.

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