USD Trading Outlook (10-06-2014)

USD/JPY and the JPY crosses traded soggy in Asia. Japanese exporter sales into the Tokyo fix outweighed Gotobi buys from Japanese importers. This and Nikkei sogginess saw most pairs lower. USD/JPY fell back from 102.60, just shy of yesterday’s 102.65 high, to 102.31. Bids returned in the 102.30-40 window but were mostly absorbed. More trail down and especially from 102.10 and into the 101-handle. Stops are mixed in sub-102.25 and 102.00-10. Offers remain in place from around 102.70 and trail up. Large vanilla option expirations at 102.50 failed to anchor the market but could come into play into the New York cut. EUR/JPY fell back from 139.41 to 139.07. Some stops were tripped on the break below 139.25. More are eyed sub-139.00 (Ichi tenkan at 139.03) and 138.65 (200-DMA at 138.68). GBP/JPY fell back modestly from 172.32 to 171.92. AUD/JPY pushed back from 95.92 late in New York and 95.90 early in Asia to 95.64 but remains very much in its recent uptrend. NZD/JPY see-sawed between 86.91-87.17, perhaps not as bid as AUD/JPY but holding its own and moving higher from 85.85 on May 29.