ForexLive Asian market wrap: No change in policy from BOJ

BOJ keeps target rate unchanged at 0.1% and announces no new easing measures Bringing an end to deflation is still a BOJ priority and they will take appropriate steps Global economic uncertainties remain high Japan April trade deficit Yen520billion Fitch downgrade of Japan's debt unlikely to have major impact on Yen Former Greek PM Papademos says Greek EZ exit is being considered China Securities Journal reports that China will use fiscal policy to maintain growth Regional stockmarkets -1.5% on average Frau Merkel still talking same talk pre EU summit Gold $1559/oz; Oil $91.40/bbl Risk-off was the first play of the day, after comments from ex Greek PM Papademos that Greece was considering an EZ exit. EUR/USD and AUD/USD fell swiftly and regional stockmarkiets opened lower. Traders were unwilling to take on much risk ahead of today's EU summit. AUD/USD fell towards a barrier at .9750, bounced a few times before finally breaking through and triggering stops to a fresh multi-month low at .9737. A Reuters headline carrying the China Securities Journal report then encouraged a bounce, taking AUD/USD back towards .9775. AUD/JPY selling after the BOJ was the next feature but support in the cross at 77.50 still holds. Ranges: .9737/88 EUR/USD also managed to break below overnight lows but the inability to breach recent lows at 1.2640 does put some questions about the strength of bearish momentum. The AUD and the JPY have been the lead currencies today and the EUR is nervous ahead of the latest summit. Ranges: 1.2644/87 USD/JPY opened near 80.00 but solid supply from Japanese exporters kept the pair soft in early trade and more Yen buying after the BOJ sent AUD/JPY and USD/JPY lower. Expected support still holds at 79.50 but pressure is building ahead of the BOJ press conference in 3 hours. Ranges: 79.49/80.07 Cable 1.5740/71; EUR/GBP .8029/47