Opened in early Europe at Y80.17 and Y100.42, opened in Asia at Y80.48 and rallied in light trade as the euro found early support, but soon slipped from the Y80.62 highs seen around the Tokyo fix, weighed by Japanese exporter sales. The pair fell back to Y80.25, having bounced off lows of Y80.14. EUR/JPY was higher ahead of this week’s EU leaders summit, with early spec buying taking the cross to a high at Y101.24, with exporter selling again capping from there. USD/JPY opened in Europe around Y80.17 and continued on from Asia with trade confined in a tight range. The cross ground lower in tandem with EUR/USD and slipped through Y100.00 to Y99.97, before the pair bounced and settled 20 pips firmer. Market sentiment turned as a Fitch rating downgrade for Cyprus to BB+ outlook negative, pressed the euro lower. A large US bank name added weight and the cross flushed stops to print lows of Y99.69, later recovering to Y99.80. USD weighed by sharp cross yen supply and a break of the 200 hour MA in AUD/JPY triggered stops to Y79.82 and sit heavy ahead of NY.
EasyForexNews Research Team