Opened in early Europe at Y81.16 and Y107.34, USD/JPY opened in Asia at Y81.34 and lifted to Y81.42 but the rate stalled with exporter supply capping moves. USD then slipped to Y81.30 and extended losses to Y81.11 with crosses leading the charge lower. The pair was stuck in a tight range as traders look ahead to tomorrow’s BOJ policy announcement and raft of data. The cross nudged higher on the open to Y107.65, before meeting supply and correcting to Y107.26. Into Europe and USD/JPY grinded lower as the weak sentiment continued following yesterday’s FOMC meeting to print Y81.07. The rate extended losses through Y81.00 to Y80.81, flushing stops on the move and positioning ahead of the BOJ. EUR/JPY lifted on the open to Y107.61 and tracked EUR/USD through stops, the move stalled before easing to Y107.50 on profit take sales. Reported semi-official supply pressed to Y107.30, rate extended losses through key chart levels which triggered short term stops to lows of Y106.89. The pair later bounced to Y107.00, although the underlying tone remains heavy.
EasyForexNews Research Team