Usd/Jpy failed to gain traction above.........>

FOREX: Usd/Jpy failed to gain traction above Y107.00 in a relatively quiet

European morning session. The USD pared gains at the NY crossover and touched

extended pullback lows of Y106.51, largely driven by Eur/Jpy which took out the

200-dma on the way to 5-month lows of Y130.94.

- Gbp/Usd witnessed a strange move just after 1100GMT, gapping 70 pips lower to

$1.3905 followed by an equally quick move back to $1.3945/50. Traders were

initially left scratching their heads on the move but it was later attributed to

incorrect sized orders for the hourly fix. The pair recovered to briefly make a

show above $1.4000 but later gave back gains ahead of the weekend close.

- Canadian headline CPI came in above forecasts at 0.7% m/m, Usd/Cad slipped to

react lows of C$1.2621 before settling around the C$1.2660/65 area. On a closing

basis tech traders will note the 100-dma (C$1.2629), a break here would indicate

further downside pressure.

- Eur/Usd lacked direction and was held to a narrow $1.2285-1.2318 NY range.

- Commodities initially pressured Aud/Usd to $0.7804, the rate found support

ahead of $0.7800 to close the week around $0.7830.