USD/JPY - 85.25.. Dlr has remained under pressure in Tokyo following y'day's selloff fm 86.25 to 85.17. A sea of red is seen among regional bourses in AsiaPac with the Nikkei being hardest hit (N225 currently down nearly 2.5%) n early release of China's lower-than-expected industrial production had sparked off massive wave of risk aversion activities with eur/yen fallen fm 112.61 to 111.70. Japan Vice Banking Min. Kohei Otsuka said in a Reuters interview that 'fx rates at critical juncture now; BOJ will need to act if FX moves have big impact on economy; soka FX intervention fm Tokyo wud have little effect on ccy markets n BOJ must work together to prevent rapied yen rise fm deepening deflation.' As mentioned earlier, solid bids are reported in 85.20-00 region whilst Offers by Japanese exporters n hedge funds are seen at 85.50-70 n more abv, wud be interesting to see what European traders wud do when they enter shortly.
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