Opened in Asia at Y81.18 and came under early pressure from heavy cross sales in the euro and aussie, as well as some sovereign supply. The move down tripped stops through Y80.95 to lows of Y80.86. EUR/JPY fell back from Y106.83 to Y106.32, just ahead of stops placed at Y106.30, with more apparently placed on a break of Y106.00. Into Europe and USD/JPY lifted off Asian lows on Gamma demand to Y81.00, trade was then stuck in a tight 10 pip range. Headlines from the BOJ suggesting they are likely to ease monetary policy on Friday via an increase in asset purchases by Y5 or Y10 Tln spiked to Y81.26 session highs, before easing on profit take sales to Y81.15 and settle ahead of the NY open. The cross tracked sharp EUR/USD demand in early dealings and lifted to Y106.70, rate consolidated gains and trade was seen flat. EUR/JPY extended gains through Y107.00, flushing some stops to print Y107.09 highs following release of the earlier mentioned BOJ headline. The pair ran into decent supply and aided by some profit taking eased to Y106.85.
EasyForexNews Research Team