USD/JPY surges back above 118.00

USD/JPY rushed higher in Asia on fresh purchases from both Japanese and offshore investors. These players took it from 117.74 through offers @118.00 and stops above to 118.34. Spec shorts were squeezed as well. Though heftier Japanese exporter offers are still eyed 118.50+, the bloc could very well bide its time with month-end needs sated and plenty of time to hedge receivables for the calendar and fiscal year-ends. Tech resistance is eyed at 118.60, 118.59 the spike high Tuesday. More is seen at 119.00, 118.98 the spike high November 20 and given optionality at 109.00. EUR/JPY and GBP/JPY rose in sympathy, the former from 146.85 to 147.30 and the latter from 185.09 to 185.88. After recent losses, specs are ambivalent towards EUR/JPY. The market is more bullish on GBP/JPY with the cross holding just under 186.10-15 resistance and fresh trend highs.

EUR/USD remained on the back foot in Asia, off marginally from 1.2468 to 1.2445 in a continuation of the push down from 1.2498 in London last night. Comments from ECB officials reiterating more comprehensive measures down the line helped EZ yields down, many to fresh record lows, and weighed on EUR. That said, EUR/USD has been see-sawing between 1.2350-1.2600 since early this month, and a break of this range looks to be unlikely ahead of fresh news and flows. EUR/GBP and EUR/CHF did little, the former holding between 0.7919-28 and the latter between 1.2019-23. EUR/GBP like EUR/USD looks to be rangebound, see-sawing between 0.7750-0.7950 since mid-June. EUR/CHF treaded water above recent lows.

GBP/USD traded soggy a la EUR/USD, off a leg from 1.5743 to 1.5705 in Asia.

USD/CHF was bid with USD/JPY, up modestly from 0.9644 to 0.9658.

AUD/USD opened in Asia at 0.8545. On the way down after rallying to 0.8616 early in London last night, it fell more from 0.8545 to 0.8486. Trading like a petro-currency, it was offered all day despite the big bounce seen in Dalian iron ore futures. Large option expiries at 0.8500 also failed to halt the move down.

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