Opened in early Europe at Y79.45 and Y99.38, JPY was mixed in Asia Thursday, trading higher against the USD but edging lower against the yen. EUR/JPY fell to lows at Y99.16 early in the session, pressured by USD/JPY selling from Japanese securities houses. However, an unwillingness to hold euro shorts ahead of the EU leaders summit saw EUR/JPY bounce in the wake of a EUR/USD rally. USD/JPY fell on the early selling, but demand around Y79.20/25 and continued expectations of Japanese action somewhere below Y79.00 supported. Into Europe and market volumes continued light with USD/JPY stuck in a tight 10 pip trading range. Reports from a German government source that no decisive actions will be taken during the key EU summit weighed heavily on markets. Dollar pressed trough technical support to Y79.22, later recovering to Y79.32. The cross tracked sharp EUR/USD slippage and triggered a number of stops on the move to Y98.32, before dip demand lifted to Y98.60 ahead of NY.
EasyForexNews Research Team