Opened in early Europe at Y79.44 and Y99.85, USD/JPY edged up from early overnight session lows of Y79.19 to Y79.44 into early European dealing, as the underlying risk on tone, along with recent threats of yen intervention, continue to prompt an outflow from yen, though at a slow pace. EUR/JPY traded up from Y99.54 to Y99.89, but offers placed toward Y100.00 prevented stops above from being triggered. USD/JPY opened flat in Europe before heading lower on exporter supply, the rate tracked EUR/USD and extended losses to Y79.24. Semi-official supply counteracted any recovery attempts, before macro demand bounced to Y79.35. The cross tracked EUR/USD and pressed to Y99.41, before bouncing to Y99.60. A well received Spanish auction and continued cross yen demand lifted the pair to Y99.97, later easing to Y99.90. USD was dragged higher in tandem to Y79.45, settling around Y79.40 ahead of the NY open and Bernanke’s testimony to US law makers at 1400GMT.
EasyForexNews Research Team