USD/JPY was trading modestly lower in Asian trade, although off the lows seen early in the session. The pair rallied into the Asian open, helped by fresh safe-haven flows as Moody’s became the latest ratings agency to downgrade Spain. The pair touched a low at Y79.30, before rallying to Y79.48 in Sydney trade. The pair opened in Tokyo at Y79.45, slipping into the fix to retest the lows, but bouncing off of Y79.32 as trading desks again eye the possibility of intervention from Japanese authorities as jawboning continues. The pair was, however, confined to a narrow Y79.32 to Y79.46. EUR/JPY was last trading at session highs at Y100.00 – testing reported offers layered from Y100.00 to Wednesday Y100.10 high. Early Tokyo trade saw the pair fall over the Tokyo fix on light selling, but rally from Y99.65 Tokyo low into the close to end at Y100.00.
EasyForexNews Research Team