Opened in early Europe around Y78.17 and Y96.96, USD/JPY closed in NY Friday at Y78.03, after rate had seen extended lows of Y77.652 on release of weaker then expected US NFP data Friday, the rate then spiking to Y78.724 on intervention concerns. BOJ checking of rates was mooted but never confirmed. Rate recovered from an early dip low of Y78.039 to a high in Asia of Y79.50, but just as quickly sank back to Y79.15/20 where it remained for the balance of the overnight session. EUR/JPY saw a post NFP low of Y95.59 before it too spiked higher on a mix of the sharp USD/JPY rally, and EUR/USD rallying on QE3 concerns, trading to a high of Y97.51. Trade through Asia was contained by Y96.779-Y97.26, holding back above Y97.00 into Europe. The spike in USD/JPY failed to prompt any comment from FinMin Azumi to link move to intervention, though traders remain wary of action. USD/JPY was squeezed lower in Europe to challenge strength of demand at Y78.00, the level providing a base in an otherwise subdued session. Fed Bernanke Thursday seen key, market watching for hints on QE3.
EasyForexNews Research Team