JPY traded on a firmer footing as renewed pressure on the JPY crosses led price action. EURJPY and GBPJPY experienced heavy selling from interbank names and speculative accounts, with European equities weighed on amid financial sector concerns. EURJPY reverted to levels underneath 150.00, although price action was choppy, with movement either side of this level. GBPJPY suffered on weak U.K. fundamentals and focus on U.K. bank shares after more hedge fund short selling of HBOS, which eventually fizzled out on Lloyds merger talk. AUDJPY and NZDJPY also suffered, with interbank names and CTAs reportedly tracking the losses elsewhere, along with interest from currency overlay managers. Meanwhile, USDJPY consolidated around 105.50, with JPY cross flows dampening the upside, although a moderately firmer dollar tone since the European open reinforced the downside. Bids remain healthy under 105.50 and into the 105.00-10 area.
