Opened in early Europe at Y77.79 and Y101.64. Japanese officials also reiterated that Japan would not change its stance on intervention in FX markets and would take appropriate action when needed, despite a US Treasury report that the US didn’t approve of the recent MOF actions in the market. EUR/JPY slipped from Y101.81 to Y101.57 as EUR/USD gently eased in thin trade. USD/JPY slipped throughout the European session albeit a tight Y77.68-82 range, before picking up to Y77.72 ahead of the NY open.
EUR/JPY opened at Y101.64 and slipped to Y101.56 on order flow amid thin markets. The rate met demand and bounced to Y101.70 session highs, before easing into a tight range. A well received Italian bond auction failed to spring the cross into life and the pair closed the morning around Y101.60. Demand seen into Y101.50 and supply at Y101.80 capping any moves, for now.
EasyForexNews Research Team