JPY Trading Outlook (18-01-2012)

The Japanese Yen (JPY) the USD/JPY dipped on USD weakness to fresh multi week lows at Y76.55 but then reversed sharply on strong buying and warning of EUR/JPY intervention from Japanese officials. The EUR/JPY squeezed higher above Y98 briefly but closed below the figure. More downside is expected over the medium term as the crisis continues but the market has stabilized and more gains in the short term are very possible. AUD/JPY flirted with the key Y80 level but failed to hold above the figure.

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