USD/JPY opened at Y80.00 after seeing lows of Y79.85 in NY following strong 7yr treasury auctions, but recovering on the back of strong real money and leveraged demand in the EUR/JPY which sparked a wave of short covering. The USD moved steadily higher in asia on the back of importer, investor demand and was bolstered by a jump higher in EUR/JPY after taking out resistance at the 200 day MA of Y107.09 and tripping stops. Dollar ran up to Y80.38, and the cross pushed up to Y107.50 from Y106.85 taking out stops through Y107.10. Into Europe and USD/JPY headed higher to Y80.63, given a boost by leveraged name demand in EUR/JPY, before easing to settle around Y80.55. Strong dollar sentiment continued and the pair consolidated overnight gains ahead of NY. EUR/JPY slipped on profit take sales around the open to Y107.65 following sharp overnight gains. Demand was seen into the dip and aided by a buoyant EUR/USD the cross printed Y107.97, before running into a flurry of offers ahead of the Y108.00 barrier and ease to Y107.85.
EasyForexNews Research Team