Opened at Y79.44/98.88 after Y79.23/75 and Y98.33/99.48 overnight ranges, USD/JPY had found bids ahead of Y79.00 area after risk unwinds had weighed on the pair, and USD had rebounded to Y79.45 as the US session got underway, with EUR/JPY recovery stalling at Y99.00. Sideways trading for the USD resolved lower ahead of the option cut, risk appetites paring back again as US stocks opened with losses, and USD sipped to Y79.25 as EUR/JPY deflated to Y98.50, the USD then finding solid bids again. While EUR/JPY hobbled along near Y98.60, dollar pair lifted to Y79.35 by midday and stretched to Y79.38 by early afternoon, gains reaching all the way to Y79.41 ahead of the IMM close even as EUR/JPY continued a narrow orbit around Y98.60.
EasyForexNews Research Team