JPY Trading Outlook
The Japanese Yen (JPY) USD/JPY fell back in risk aversion during Europe with EUR/JPY coming under heavy selling pressure. The EUR/USD rally later in the day sent the USD weaker against most of the market. Support is seen at Y81.80 with the market now searching for support.
The Japanese Yen (JPY) the USD/JPY pivoted around the Y83 level but ended at the day lows with crosses led by the AUD/JPY pulling the major lower on safe haven demand. The USD/JPY moves in relation to the US Bond Yields in particular the 2 year which reacts to changes in US monetary policy expectations.
The Japanese Yen (JPY) the USD/JPY refused to behave overnight surging past Y83 on the stronger USD and ignoring the risk aversion. The AUD/JPY reversed under Y87 however and is in danger of unwinding with the sentiment towards the former favorite cross fragile lately.
The Japanese Yen (JPY) USD/JPY grinded higher against the USD weakness with the Yen crosses roaring higher overnight. The Crosses are providing much of the Yen Weakness pushing the major up toward Y83 but the outlook is for range trading as the two safe havens are evenly matched.
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