The USD/JPY will likely remain in a 78.25-78.55 range in Asia as participants are reluctant to take aggressive positions ahead of various key events later in the day, including a teleconference among G-7 finance ministers, says a senior dealer at a major U.K. bank in Tokyo. The USD/JPY is at 78.37. The market focus is also on rate decisions by the Reserve Bank of Australia and the Bank of Canada later. "There is caution over potential intervention by (Japanese authorities), but I don't think they would come in around these levels," he says. Although some short positions in JPY crosses were covered amid expectations for some measures to stabilize the markets from the G-7 teleconference, further gains in the crosses are unlikely unless "there are real drivers coming out of (the conference call)," the dealer says, tipping resistance for the EUR/JPY at 98.25. The cross is at 97.99. The EUR/USD may trade in a 1.2470-1.2520 range in Asia. Focus is on services PMI data in the euro-zone. The pair is at 1.2503.
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