Japanese Yen maintained a bid tone after responding to weak regional equity markets and position adjustment by macro accounts across a number of currencies impacted by this week's rate announcements. EUR/JPY saw good selling pressure, which has left the cross well below 120.00 and eyeing a move in to the 119.00-20 region, where the next area is support is seen. AUD/JPY is also being pressured by expectations of more outsized RBA rate cuts, which forced the cross from 62.40-45 in Asian down to 60.70 in early European trade. Sterling headed lower, which saw GBP/JPY fall in sympathy with other JPY crosses, although the direct flows in the cross have been more influenced by stop losses rather than short positioning. The cross is down sharply from the Asian peak around 147.00 and is now eyeing the 143.50 level, where bids are currently limiting downside tests. USD/JPY is moving towards the 94.50 area, where sovereign name interest is cited after stops gave way below 94.90, while importer bids are seen at 94.30, 94.20 and 94.00.
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