apanese Yen (JPY) Crosses Rise as U.S. Bailout Talks Continue

[DailyFx]

JPY traded on a supportive footing, with evidence of risk reduction as U.S. Congress continued to debate the U.S. bailout plan. Equity markets were relatively stable, but with little overall bias. The market anticipates a successful outcome, with little other alternatives, but the delay in progress has seen some defensiveness return after the initial euphoria seen last week. USDJPY marks time between 105.50 and 106.00 after losing its bid in the Asian session, while EURJPY continues to trade either side of 155.50. JPY buyers have included Japanese lifters and corporate accounts, with some flows related to the forthcoming half-end of the current fiscal year. Stops above 106.40-50 remained intact after prices fell from 106.30. Bids in to 105.50 have included Japanese importers and fund names, with some book closing activity going through, but volumes remained on the thin side, according to sources.