Opened in early Europe at Y78.76 and Y97.64, Opened in Asia around Y79.10 at the top of the range and headed lower on further deleveraging, a weak start to Asian equities added weight to Y78.90. USD pressed lower on FinMin Azumi comments warning that FX and stock markets moves did not reflect fundamentals, extending losses to Y78.71 on month end flows and Japanese corporate sales. Real money demand met in the dip and the pair recovered to Y78.85. The cross slipped on continued eurozone concerns and took out the Y97.50 barrier, flushing stops to 4 month lows of Y97.36. Willing buyers met in the dip and aided by EUR/USD demand the pair recovered to Y97.65. USD/JPY was stuck in a tight Y78.76-90 European range, with importers providing strong support at Y78.60. EUR/JPY lifted on early Middle-Eastern demand to Y97.78, before running into model account supply and easing back. A moderate bounce recovered and the cross tracked EUR/USD to print Y98.03 highs, later slipping back to Y97.95 as dealers look ahead to a raft of US data releases.
EasyForexNews Research Team