Wed, 08 Sep 2010 00:25:00 +0200

Risk-off in Asia, Yen extends gains

FXstreet.com (Barcelona) - Investors in the Asia-Pacific region rushed back to repeat risk-off scenes from yesterday, reinstating further inflows to buy the Japanese Yen right from the begining in Asia. European Banks debt woes remain the main topic of concern in early trade, likely to pose major challenges for risky currencies this Wednesday.

USD/JPY, after testing a fresh 15-yr low at 83.49, was repelled from lows to finish at 83.80 on NY close, yet a downside acceleration ahead of the Tokyo opening sent the pair back down to 84.65. EUR/JPY decline from 109.50 just broke key support at 106.16, posting a fresh 2-week low at 106.06.

GBP/JPY resumed its downtrend, attempting to test a fresh 15-week low at 127.85 hit yesterday. Price stays at 128.50. Meanwhile, AUD/JPY was also dragged lower since the start in Asia, breaking yesterday's low at 76.15, to be halted at 76.11, key support area.