Opened in Asia at Y83.55 after falling to lows of Y83.20 in NY on profit taking seen from macro funds. Exporters waded in from the opening bell in Asia today, selling the pair down from early highs of Y83.63 to Y83.36. A bounce into the Tokyo fix stalled into offers in the Y83.55/60 area and the dollar slid in orderly fashion to Y83.27 before settling around Y83.50. A similar story for the EUR/JPY with macro funds and exporters both selling, pushing the cross from Y109.39 to Y109.01 before a bounce to Y109.33. USD/JPY opened flat in Europe before spiking to Y83.75 on strong treasury yields, triggering some stops from Asian names on the move. The strong sentiment continued and the dollar lifted to Y83.83 session highs, before easing on profit take sales to Y83.75 ahead of NY. The cross headed higher on EUR/USD hedge fund demand to Y109.40 and extended gains to Y109.53 on dollar-yen buoyancy. The pair was unable to maintain gains, running into strong supply and aided by some profit taking settled around Y109.40.
EasyForexNews Research Team