Opened at Y79.74 in Asia and after an early low of Y79.68 headed higher on cross demand particularly on EUR and AUD/JPY buying which has steadily taken out a raft of offers and finally flushed the Y80.00 barrier tripping stops to a high of Y80.07. There are further offers lying ahead of Y80.50 which likely holds a barrier and further buy stops are set for a break of the level. EUR/JPY opened at Y105.53 and after early lows of Y105.44 headed higher to 105.90. Dollar-yen was unable to consolidate gains on the European open and pressed lower to Y79.94, before demand into the dip lifted the dollar back above Y80 to Y80.15. Strong sentiment continued and the rate headed higher through Japanese exporter offers/barrier interest to Y80.29, triggering some stops on the move. Profit take sales eased the pair to Y80.15 and trade flat ahead of NY. EUR/JPY slipped on the open to Y105.82 before meeting strong demand and paring losses. Asian sovereign EUR/USD demand boosted the cross through Y106 to highs of Y106.33, before easing to settle at Y106.10.
EasyForexNews Research Team