Opened in early Europe at Y79.71 and Y99.91 Opened in Asia around Y79.55 and headed higher on positive CPI data, Japanese importer and multiple-of-5 demand to Y79.72. The rate pared gains after the Tokyo fix, before running into strong support from corporates and attempting a recovery. The pair extended gains as dollar sentiment turned to print Y79.82 highs, before sharp cross yen sales pressed to Y79.62. EUR/JPY traded a tight 25 pip range with dealers taking a sell on rallies strategy, lifting to Y100.02 ahead of the fix, before paring gains to settle around Y99.90. USD/JPY continued heavy into Europe and the pair ground lower to Y79.60, extending losses on late supply to Y79.52. The cross opened on a buoyant tone and tracked EUR/USD corrective pullback through Y100.00 to highs of Y100.33 aided by Asian sovereign demand. Profit take sales eroded some gains to Y100.10 and the rate will be looking to close above Y100.00 in NY for the next leg higher.
EasyForexNews Research Team