Opened at Y76.72 in Asia in what proved to be another very quiet session with the pair failing to break out of a Y76.65-78 range. Further pressure built on the EUR/JPY after the Tokyo fixing, with the pair falling from early highs of Y99.35 to Y99.09 before strong Japanese bids ahead of Y99.00 stops deterred further losses. AUD/JPY also came under pressure again on China concerns and after a surprisingly high CNY fix, slipping from an early peak of Y79.56 to Y79.11 on sales from Japanese names before balancing around Y79.20. Talk remains of semi-official/official bids down at Y76.50/60 with offers parked up at Y77.00. Euro-yen bids remain ahead of Y99.00 with stops set on a break. Offers start from Y99.35 with more towards Y100.00 and Y100.20/30. Cross traders will likely gun for the stops should the French auctions this morning disappoint.
EasyForexNews Research Team