USDJPY holds post-NFP gains

USD/JPY did little in Asia, holding in tight ranges after the post-US jobs data surge on Friday. USD/JPY fell back on profit-taking, off from 119.20 to 118.73. Most of the action was between 118.75-90. Only modest Nikkei gains and BoJ Morimoto-speak that rapid JPY falls were undesirable weighed on USD/JPY. EUR/JPY saw a low of 134.35 early before bouncing into a 134.53-73 range. Offers are thick above 135.00 on concerns over Greek debt and a more possible Grexit.

EUR/USD opened in Asia at 1.1312 after selling off hard Friday in the wake of the much stronger than expected US non-farm payrolls report. It fell more to 1.1286 on Sunday night comments from Greek PM Tsipras. As has been the case recently, the market quickly brushed off Greece concerns and EUR/USD rallied thereafter to 1.1340. The move down in USD/JPY from its early high helped. With the market pricing in a Fed rate hike in mid-‘15 and US yields significantly higher. The divergence in Fed-ECB expectations should keep EUR/USD under pressure with short-covering rallies viewed as selling opportunities.

GBP/USD fell from 1.5260 to 1.5210 before rallying to 1.5262 in line with EUR/USD moves. EUR/GBP treaded water between 0.7420-35, eyeing further moves down. Stops are eyed sub-0.7400, 0.7406 the spike low on January 26.

USD/CHF fell back a bit from 0.9288 to 0.9245 but well within its recent range. EUR/CHF was in a holding pattern between 1.0463-1.0505 with many wary over intervention after more comments from SNB Chair Jordan over the weekend.

AUD/USD opened in Asia at 0.7768 and traded a 0.7748-78 range. Poor China trade data out Sunday helped cap the upside. AUD traded heavy elsewhere too and especially against its Antipodean neighbor with AUD/NZD off from 1.0589 to 1.0528 and EUR/AUD up from 1.4545 to 1.4598.

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