Opened with a small gap higher at Y77.02 after highs of Y77.01 and a close of Y76.97 in NY. The rally continued in early trade with a spike up to Y77.14 before heavy EUR/JPY sales led a sharp move back down through Y77.00 to Y76.81, before encountering Japanese importer demand. EUR/JPY fell back sharply from highs of Y97.62 through the Friday NY lows of Y97.20 to Y97.04, stalling just ahead of reported barriers at Y97.00 and massive stops set on a break of the level. The US public holiday had an impact on markets in European trade this morning, with light volumes seen across the board. USD/JPY was stuck in a tight Y76.76-87 range, looking to breakout. EUR/JPY traded flat on the open before Middle-Eastern demand lifted the rate to Y97.39 and fresh session highs. The cross was unable to sustain momentum and pared early gains to Y97.30, the corrective pullback continued and the rate eased to Y97.10 ahead of the reported Y97.00 option barrier. EUR/JPY bounced off lows to Y97.20, although the tone remains heavy.
EasyForexNews Research Team