Opened in early Europe at Y79.68 and Y101.05, opened in Asia at Y79.50 and headed lower in thin trade to Y79.39 before the rate met strong dip demand and recovered to Y79.65 as the pair benefited from the Fed standing pat on expansion of QE. Reports circulated that the BOJ could decide to ease policy in July also supported the move. Exporters capped and dollar settled around Y79.60 in a tight trading range. The cross mirrored the move slipping to Y100.54, later bouncing to settle around Y100.85. Into Europe and USD/JPY continued in a tight range with sizeable real money demand counteracted by decent corporate supply. The cross was pulled around on reaction to Flash PMI data, lifting to Y101.00 on the French release, before paring gains on a soft German number, rate extended losses to intraday lows Y100.67. The pair made a decent recovery back through Y101.00 and later spiked through technical resistance to Y101.36 as yen sentiment turned. Dollar moved in tandem and lifted to Y79.91 with reported large offers from exporters seen ahead into Y80.00.
EasyForexNews Research Team