Opened at Y79.47/99.97 after Y79.18/74 and Y98.56/100.50 overnight ranges, USD/JPY was underpinned by a EUR short-squeeze that lifted EUR/JPY, though both pairs had relinquished some gains ahead of the US session. USD continued to hobble along near Y79.50 in early dealings but as fresh euro demand emerged on crosses, both EUR/JPY, and later USD/JPY, tracked higher. USD stalled at Y79.65 mid-morning but EUR gains powered the cross to near Y101.00 ahead of option expiry before offers capped, but EUR/JPY upswing continued as USD/JPY demand emerged at the London fixing, driving that pair to Y79.98 and lifting EUR/JPY to Y101.40 with dollar momentum capped by strong exporter offers at Y80.00 and tech resistance at Y80.09. Late morning into afternoon saw dollar contained inside Y79.75/90 while EUR/JPY settled back to Y101.00.
EasyForexNews Research Team