Opened in early Europe around Y79.20 and Y100.63, The boost to risk provided by the Greek election win by pro-bailout parties led to USD/JPY and EUR/JPY pushing higher into Asian Trade Monday. EUR/JPY rally was driven by euro’s general recovery, as well as long JPY positions getting pared, the rate, having closed NY at Y99.50, was taken up to Y100.10 with continued demand into Asia moving it on to Y100.85. USD/JPY closed in NY Friday at Y78.68, marked up to Y78.79 before being taken on to Y79.303. Both pairs drifted off highs, EUR/JPY finding support ahead of Y100.40, while USD/JPY met support between Y79.10/00. The euro retained a buoyant tone into early Europe but failure to recover saw fresh pressure emerge, taking EUR/USD back to fill its technical gaps with EUR/JPY pressed back to Y99.80. The move back toward risk aversion saw dollar-yen rest heavy on reported support between Y7910/00 with markets now awaiting NY’s reaction to the weekend news. Tuesday’s FOMC will move more into focus.
EasyForexNews Research Team