(Action Economics) - 23-Feb-12 11:20 - USD-JPY headed back towards 80.00 after it topped out just over 80.25 in Europe ahead of option sellers at 80.40.

USD-JPY got no follow through from JPY-cross demand like previous sessions and drifted lower as overbought technical studies encouraged hedge funds to reduce positions.

Technical watchers cited potential for further a move on trailing stops at 79.70 if it closed under 80.00.

Meanwhile, a leading Japanese house said 30% of corporates see the recent USD-JPY move as a trend change, while 70% believe it is just a correction.

They said private investors had been doing most of the selling on rallies in recent sessions, with exporters mostly sidelined until April.

The majority are hedged for the fiscal year and won't have much to do until budget rates are set in April so there may be less resistance than on previous USD-JPY rallies.

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