The yen was higher against both the euro and the dollar 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. Bids are noted below at Y79.20/25, although market chatter continues to seen Japanese “stealth intervention” in the Y79.00 area. Above, there are offers at Y80.00, but traders note a build-up of exporter offers from Y80.50. The stronger yen weighs on the Nikkei, last 1.1% lower. EUR/JPY was trading at Y99.35, with initial bids at Y99.10/15 – the Monday low – offering support. However, a break below Y99.00 could trigger stops. Offers from exporters are seen building closer to Y101.00.
EasyForexNews Research Team