Opened at Y77.57 after recovering from lows of Y77.40 in NY and came under pressure as EUR/JPY sales emerged on the back of downgrades from Moody’s over 9 European sovereigns. The USD fell through the NY lows to Y77.36 before recovering to Y77.60 ahead of the BOJ announcement that it will increase asset buying by a further Y10 trln to Y65trln. The USD pushed higher through offers to Y77.85 then tripped stops to a high of Y77.96 before settling around Y77.85/90. EUR/JPY made a strong recovery from early lows of Y101.82 to Y102.63 , before easing to Y102.50. Into Europe and USD/JPY eased on offshore flow to Y77.91 before running into strong demand from models, leveraged and CTA accounts which pushed the rate through Y78 to Y78.19. Profit take sales eased the pair to Y78.03 ahead of NY. EUR/JPY slipped on the open to Y102.40 before tracking EUR/USD sentiment higher. Strength seen in Yen crosses lifted the pair to fresh highs Y103.12, before profit take and Asian sales pressed to Y102.97.
EasyForexNews Research Team