Chart: WorldWideMarkets Alpha Trader
Dollar yen was well bid at the European open and rallied to test 120.00 breaking from its narrow ranges in the prior Asian session as the Japanese Fiscal Year End begins tomorrow.
The 80 pip rally in Europe is based on position squaring, the modestly firm dollar and higher stocks led by the news of China's proposal of a new highway to Europe and comments from the PBOC governor.
Chinese stocks surged to seven-year highs, following the news of Beijing's unveiling of an ambitious plan to build a modern Silk Road to Europe and Africa.
PBOC Governor Zhou Xiaochuan calls for vigilance on deflation and hinted to expect more monteary policy easing. Shanghai CSI 300 Index is +116 points to 4,088 (+2.93%)
Nikkei +125.77 points to 19,411.40 (+0.65%), Hang Seng +388 points to 24,855 (+1.51%)
Decent sized offers are located at 120.00 and this is a major obstacle. Japanese importer bids are clustered below 119.10. The 14-day moving average support is 119.70 and 119.20.