Early morning saw Yen crosses bought after a slight retracement from the NY highs. EURJPY traded up as traders positioned themselves for the Japanese GDP number. Locals pushed the EURUSD higher but ran into offers at 1.3650 as USDJPY topped out just above 96.20.

The GDP number came in at 4% slightly better than expected however market was sold off in the hour that followed as a slightly long market unwinded positions. Yen crosses led the way lower as Japanese Institutions sold EURJPY, AUDJPY and even GBPJPY. EURJPY took out technical support at 130.30 and stops under 130.00, trading back to 129.70. AUDUSD came under pressure after the consumer confidence number fell and Merchandise Imports fell, trading back under 77c and in the process taking out weak overnight longs. GBP held its ground for a while as US names sold EURGBP but was eventually weighed on by GBPJPY selling.

The afternoon saw Yen crosses bought off their lows. Good buying in AUDJPY and HK names buying AUDUSD saw it trade back 7720 catching break traders short. EURJPY swung back up thru 130.20 from the 129.70(100 hour MA) low in a blink of an eye as a Japanese Fund manager did a large bout of buying.

Ranges:

EURUSD 1.3583 – 13650

GBPUSD 1.5450 – 1.5497

USDJPY 95.46 – 96.22

EURJPY 129.69 – 131.32

AUDUSD 7684 – 7757

Goodluck,

Sam