USD/JPY closed in NY at Y78.36, after touching an extended low of Y78.21. Rate quickly picked up a bid tone into Tokyo trade, the move up to Y78.65 aided by FinMin Azumi warnings of decisive action on yen as well as talk of M&A flows linked to Japanese Marubeni buying of US grains firm Gavilon, in a deal worth $3.6bln. The recovery met decent supply around that Y78.65 level with rate then easing back to Y78.40 ahead of the european open. Asian traders report strong demand seen in place at Y78.20, with suggestions of official linkage,a break to expose stops but expect further demand to emerge ahead of Y78.00. EUR/JPY pushed higher in early Asian trade, the rate moving up from Y96.79 to Y97.12 before easing off to Y96.75 which weighed back against dollar-yen’s early recovery. The cross had edged back toward Y97.00 ahead of the European open as the euro picked up some general demand into early Europe. US Employment Report the key release today, with effects on UST yields to provide direction for dollar-yen.
EasyForexNews Research Team