FX Update: The yen came under general pressure
FX Update: The yen came under general pressure during the pre-Europe part of the Asian session today. The Japanese currency gave back some of the gains it saw over the last couple of days. USD-JPY and EUR-JPY lifted out of yesterday's lows, the former logging a peak of 113.57, up from yesterday's low at 112.86. EUR-JPY saw a similar price action, while AUD-JPY carved out a new five-month peak at 87.90. The AUD-JPY cross, widely seen as a proxy of the China economy and broadly global risk appetite, has been rallying quite strongly over the last week, and was particularly buoyed in the wake of Fed Yellen's dovish-leaving guidance at her Congressional testimonies, and by strong Chinese export data. AUD-USD, meanwhile, edged out a fresh four-month high at 0.7746. EUR-USD settled near the 1.1400 level, up on yesterday's 1.1370 low but remaining comfortably off the 14-month peak logged earlier in the week at 1.1489, despite news that ECB President Draghi will be speaking at this year's Jackson Hole Symposium (August 24th-25th), which invited speculation that he would use this venue to make a long-awaited announcement on policy tapering. Draghi had formerly used the same venue to prepare markets for quantitative easing. Sterling has remained underpinned, trading further into one-week high terrain versus both the dollar and euro.