USD/JPY and EUR/JPY opened at Y83.05 and Y110.95 respectively after closing in NY on Friday at Y82.86 and Y110.55, the gaps higher seen on the weekend strong Chinese Mfg PMI release. The USD/JPY strength coming on the back of the cross moves. Both fell back in early trade to Y82.76 and Y110.56 before a weaker Tankan and overseas investment demand led the pairs higher; the dollar through stops at Y83.10 to Y83.31, and EUR/JPY pulling out some stops through Y111.00 to Y111.14, later drifting back to Y83.03 and Y110.72 respectively. USD/JPY eased on the European open before pressing lower on strong UK PMI data to Y82.80. The pair extended losses to Y82.65, before nudging higher to settle around Y82.75. The rate retains a heavy tone and bounces seen shallow ahead of the NY open. EUR/JPY grinded higher to Y110.95 but was unable to push through Y111.00, slipping to Y110.80 on some profit taking. Large EUR/GBP sales and a turn in equities pressed to Y110.28 lows before recovering to Y110.50.
EasyForexNews Research Team