Just getting reports of Japanese names selling USD/JPY at these low levels which is kind of unusual. O/n in Asia saw some short covering from Tokyo names in anticipation of intervention with further cross buying in gold vs yen, which has so far diluted the dollar selling pressure.
We’ve seen a low of 76.31 this morning and any form of a bounce has been very half hearted, despite the usual jaw boning from Fin Min Noda in Asia this morning.
Just hearing reports from a Japanese bank that the EBS platform has bids in excess of $400 around the 76.25/30 level which is widely seen as the line in the sand… Guess we’ll have to just wait and see.
Stops are set on a break down of 76.25 and 76.00
