EUR/JPY was the stand-out in Asian trade Friday, powering higher as EU officials outlined some short-term fixes for the Spanish and Italian borrowing cost issues. The pair was trading around Y98.60, rangebound, before trading in a straight line to Y100.22. Stops were triggered at various levels on the bounce, with hot money accounts chasing the cross higher. Offers were seen from exporters layered from Y100.25 to Y101.00, as the quarter end looms. Bids are seen below at Y98.50, but a lot of retracing to retest those levels. Dollar-yen ended lower, despite being tied to a fairly narrow range. The pair was last at Y79.30, bang in the middle of the range. Once again, exporter selling into the Tokyo fix pushed the pair lower, as they unwind ahead of the quarter end. Bids noted below at Y79.00, although traders still talk of Japanese intervention below the figure.
EasyForexNews Research Team