Opened in early Europe at Y79.65 and Y99.69, JPY was higher against both the EUR and the USD Tuesday, as quarter-end repatriation flows in light volumes weighed on the majors. The yen was higher despite ongoing political uncertainties ahead of the sales tax vote. USD/JPY fell to Y79.43, before finding some support and last trading at Y79.50. EUR/JPY was trading at Y99.35. Into Europe and early importer demand lifted to Y79.76, before paring gains as markets opened quiet across the board. EUR/JPY climbed to Y99.83 in early trade, before profit take supply eased to Y99.60. USD sentiment turned and the pair headed lower, flushing stops through Y79.50. The cross slipped in tandem triggering stops through Y99.50 and Y99.00 to print lows of Y98.91 as large cross-yen sales weighed on markets. USD/JPY hit lows of Y79.23 and remains heavy with any recovery attempts seen shallow.
EasyForexNews Research Team