A quiet session to open the week for the dollar-yen, opened around Y80.90 amid concerns over China’s band widening of the Yuanand and traded a quiet Y80.85-00 range with the real action seen in the crosses. EUR/JPY was pushed sharply lower with the EUR/USD, the cross falling from Y105.84 through stops in the Y105.45/50 zone to lows of Y105.24. USD/JPY collapsed ahead of the European open to Y80.44 on continued hedge fund sales and stops flushed in the cross through Y105.00 to Y104.64. Demand seen in the dip from retail investors lifted back to Y80.65 where trade continued sideways in tight ranges. Late demand nudged to Y80.80 although the tone remains heavy ahead of NY. EUR/JPY slippage attributed to sharp EUR/USD sales flushing stops through $1.3000 to print fresh 2 month lows of $1.29945. Profit take demand lifted the pair back to Y104.90, before extending gains to highs of Y105.27.
EasyForexNews Research Team