USD/JPY: Recovers A Bit On Cross Short-Covering, Orders Galore
Tuesday, May 29th, 2007Tokyo, May 30. USD/JPY showed some bounce a short while ago on the back of the rally in EUR/JPY and buy-backs seen on other JPY crosses. The crosses sold off hard overnight after news of the hike in the Chinese stamp duty on stock transactions. Renewed weakness was seen ahead of the Shanghai bourse open. With the crosses looking more buoyant, it is not surprising to see USD/JPY bounce a bit from its 121.29 low. The pair is currently indicated at 121.45/48, off still from early highs in the 121.70/75 area but well off its lows. Bids below look to remain strong and are seen from a variety of players, especially between 121.00- 20. Some stops are eyed below 121.00 but bidding interest is expected to return on the 120-handle. Topside, offers remain heavy at 121.90-122.00 and then above at 122.05, 122.08, 122.30 and 122.40. Large stops are mixed in however above 121.90 and above option barriers at 122.00, 122.25 and 122.50