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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Bali) - An additional number of USD long positions were forced to bail out following a dismal US jobs report last Friday, with thin market conditions - Tokyo closed - helping trigger stop loss orders in favour of the Yen and the Australian Dollar.

The Australian Dollar saw follow through to its Friday's gains, benefited by the perception that QE taper pace will slow down after the poor US NFP. Besides, a strong CNY fix, strength in currencies/stocks from emerging markets and surging nickel prices, together with the increasingly tight correlation with the Yen, helped the pair hit a 2014 high of 0.9040.

With regards to the Japanese Yen, the overly short exposure by specs saw the unwinding of positions continue, with gains accelerating once 103.70/80 in USD/JPY gave in - sizeable stops below - , which let to a decline in the pair (USD/JPY) as low as 103.30, where standing bids from japanese produced a minor rebound. Talk has it that a strong CNY fix was the initiator of the fall in Yen crosses, although judging by how price action unfolded, it looks to be more a case of a move aimed at hunting stop-loss orders. The sharp collapse in the 10-yr US Treasury yields on Friday is likely to add pressure to all Yen crosses.

The New Zeland Dollar also saw solid follow through in sympathy with the Aussie, featuring a 0.8285-0.8335 range, with latest quotes near day highs. The CNY fix at 6.0950 vs 6.1008 Friday, helped to readjust the sentiment towards the NZD/USD, allowing to regain a tighter course higher with a flying AUD/USD. As per the Euro, British Pound, Swiss Franc and Canadian Dollar, the absence of flows kept the currencies in tight ranges ahead of their respective sessions.

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