FX Update

The US dollar is firmer against the major foreign currencies, but the main interest today is on the first Japanese intervention in six years that has succeeded in driving the greenback through the JPY85.00. This appears to have weighed on the Swiss franc as well, which also is among the weakest performers today.

For its part, the euro has been consolidating the Mon-Tues sharp gains. Initial support is seen near $1.2750, but look for North American to probe the offers that are thought to lie near $1.3050. Yen weakness has persisted through the European morning, even though the intervention appears to have ceased. The dollar rose to JPY85.54 before the momentum faltered. Additional resistance is seen near JPY85.75 and it seems likely that North American participants may try to test the resolve of Japanese officials.