Japanese Yen Crosses Remain Bid in European Trade

JPY traded on a softer footing in Asia on a strong equity market rally. USD-JPY successfully cleared 94.75 option barriers to trade up to 94.81 highs in early European trade. News that CIT received USD 3 bln in rescue financing to avoid bankruptcy was a supportive factor, which fueled good interest to buy the JPY crosses. EUR-JPY traded up to 134.35 highs and GBP-JPY traded up to 155.90, where standing 156.00 offers capped further gains. AUD-JPY was also in the ascendency and took out stops above 76.50 to extend to highs of 76.73 early on. The crosses are likely to lead action, with USD-JPY expected to see two way flows ahead of 95.00 amid general dollar headwind and reports of option defensive selling ahead of a mooted 95.00 option barrier. Above 95.00 there are standing exporter offers, which are indicated at 95.20-30 and in to 95.50.