Opened in Asia at Y81.60 and headed higher in early trading this morning on local cross demand in AUD/JPY and EUR/JPY to highs of Y78.71, before running into a raft of offers and easing back to Y81.55. EUR/JPY was tightly rangebound through Y107.15-40 as was GBP/JPY through Y130.89-Y131.21. Into Europe and the quiet theme continued with USD/JPY stuck in a tight Y81.51-76 range. Further cross demand lifted the pair on the open to Y81.65, before extending gains to Y81.76 and flushing some stops on the move. Late profit take sales eased to Y81.70 although the underlying tone remains buoyant. EUR/JPY tracked early EUR/USD moves and slipped on Russian name supply to Y107.14, before bouncing to Y107.40 on Asian sovereign demand. The cross spiked to Y107.67 on better than expected German IFO data, later easing on profit take sales. The pair consolidated early gains and heads into NY on a more positive tone than of late.
EasyForexNews Research Team