Opened in Asia at Y78.06 easing to Y78.02 before some early fixing demand was noted ahead of tomorrow’s Japanese holiday. The USD failed however to break above Y78.14 in very subdued trading and later eased back towards the earlier low. EUR/JPY drifted through $101.73/90 with moves dictated by the EUR/USD. USD/JPY mirrored Asia with a tight Y78.00-12 range, slipping to session lows in early trade on EUR/USD demand, before bouncing and trade flat around Y78.08 into NY. EUR/JPY lifted on early EURO demand to Y102.10, before climbing to Y102.36 on reported Middle-Eastern euro-dollar demand. The cross traded flat in a tight 15 pip range for the most, before running into Asian sovereign supply and falling to Y102.10. Rate pressed lower in thin markets to session lows Y101.86, before bouncing to Y102.00 ahead of the NY open. Market volumes remain light and order driven with traders on the sidelines for the festive period.
EasyForexNews Research Team