By: Hillel Fuld
The JPY lost some momentum on Wednesday as the AUD reached an 18-month high, while the EUR began to lose its ground again as Greek debt continued to keep it under pressure.
The JPY fell to its lowest since September 2008 on the AUD, nearing a key Fibonacci level of 87.70 yen. The USD on the other hand had its buying down near 93.50 and the yen saw the Japanese currency reverse early gains and fall against the greenback.
Traders said foreign and Japanese players had picked up dollar/yen and yen crosses, with one dealer reporting U.S. dollar being purchased by a large Japanese bank, but the greenback had retreated from its high of the day as the Asian session reached its end.
The USD has recovered about 11 percent of its value since hitting a 14-year low of 84.82 yen last November and has broken up through some significant chart resistance levels.
"In the long term view, the yen is likely to remain on a downward trend," said a trader at a Japanese bank.
"But the yen won't weaken beyond 95 yen per dollar that easily."