JPY traded on a softer footing during the Asian afternoon after it responded to a series of weak Japanese releases, although there was one positive after industrial output posted its biggest monthly rise in April in 56 years, by 5.2%. USD/JPY remained on the backfoot in the Asian morning amid general dollar weakness, but weak Japanese data and persistent speculative activity via the JPY crosses saw it make a gradual back up to 96.75-80, where it currently trades. EUR/JPY is holding firm and is trading close to 135.50 and eyes further upward momentum, with European equity markets expected to push higher and the dollar legs underpinned amid dollar selling interest. GBP/JPY extended its recent gains to hit highs of 155.22, with global recovery hopes encouraging persistent interest for GBP on dips. Similarly, Aussie has fared well and AUD/JPY traded at trend highs of 76.85 after AUD/USD successfully broke its recent range top and eyes a run on the 0.8000 area. USD/JPY should hold up in this environment, but an overhang of exporter selling interest and talk of real money hedging above 97.00 could hamper movement, along with general dollar supply.
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