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Forex pairs in this Article » AUD/JPY, CAD/JPY, EUR/JPY, GBP/JPY, NZD/JPY, USD/JPY
* USDJPY off from 78.61 high but still bid, Japanese bids trail down again.

* Some stops mixed in sub-78.25, 78.00 and large sub-77.90 but out of range?

* Heaviness seen from ahead of 78.70 high yesterday, offers trail up.

* Flows likely to fall off dramatically, pre-weekend, no news/event risk.

* Gotobi, pre-weekend demand likely to keep USDJPY, other JPY pairs bid early.

* Many pairs now seen without direction, USDJPY tests down but good bids.

* USDJPY bids in low-78 area likely to be supportive of whole complex.

* AUD long liquidation may be over for now, AUDJPY steadier.

* EURJPY, GBPJPY and NZDJPY among the best performers in complex.

Further tests down in USDJPY were rebuffed overnight with the low limited to 78.36 overnight. Japanese bids were noted from around the 78.50 level in Asia yesterday. It seems bids trailing down to the low were filled with the market having since bounced. Bids remain below down to 78.00 and below. Stops are mixed in sub-78.25, 78.00 and large sub-77.90 but look to be out of the market's range still given the plethora of bidding interest from Japanese accounts including both importers and investors. Gotobi and pre-weekend demand should keep USDJPY especially bid into the Tokyo fix.

Other JPY pairs are seen trading alongside USDJPY for now. There is still some differences in performance but, with AUD long liquidation perhaps over for now, most pairs look to go into consolidation mode ahead of the weekend. AUDJPY and CADJPY were especially under pressure over the course of the past two sessions. Being the most popular, they perhaps had the most to lose as longs bailed. The outperformers this week were EURJPY, GBPJPY and NZDJPY. EURJPY gained from short-covering. GBPJPY was less bid but still buoyant with shorts here having covering the two weeks preceding this week. NZDJPY remains the best bid of the lot, supported by New Zealand's triple-A rating and higher yields.
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