Opened in Asia at Y81.12 and headed higher from early lows of Y81.08 on general yen selling, led by EUR and AUD cross buying. Dollar pushed up to Y81.20 on model related buying tied to momentum sales of yen against the KRW, and built steadily higher on EUR/JPY demand, tripping CTA stops through Y81.40 to highs of Y81.52 before settling back around Y81.45. EUR/JPY rally was triggered by talk of Asahi brewery buying Eastern Europe’s StarBev leading the cross up from early lows of Y107.95 to Y108.43. Yen weakness continued in Europe and the rate extended gains to Y81.71 and fresh 9 month highs on further AUD/JPY demand, before running into strong offers and easing to Y81.60. USD/JPY was then hemmed in a tight range for the remainder, closing the morning around Y81.55. EUR/JPY opened flat, before sharp sales pressed the cross to Y108.00. Dip buying emerged and aided by macro demand the pair recovered to Y108.20, later slipping on Asian sovereign supply to fresh lows Y107.88 ahead of NY.
EasyForexNews Research Team