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 back of the weekend strong Chinese Mfg PMI release which bolstered the EUR/USD. 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 USD through stops at Y83.10 to Y83.31, and EUR/JPY pulling out some stops through Y111.00 to Y111.14. The pairs have since drifted back to Y83.03 and Y110.72 respectively. AUD/JPY opened Y86.73 from Y85.75 slipping back in early trade to Y86.30 before recovering again to Y86.77 on the weaker Tankan and later settling around Y86.40. GBP/JPY tracked the EUR/JPY falling from early highs of Y133.13 to Y132.57 filling the gap left from the NY close of Y132.69, before bouncing to highs of Y133.26. USD offers lie from Y83.40/50 with stops above. Bids from Y83.00 down to Y82.75. EUR/JPY offers run up from Y111.10 to Y11.50 with stops above, support seen towards Y110.50.
EasyForexNews Research Team