Opened in early Europe at Y79.53 and Y100.40, opened in Asia at Y79.85 and ground lower in thin trade. The pair bounced on a solid Tankan survey but was unable to hold gains and extended losses to Y79.50 in late dealings. EUR/JPY was higher from the off, but pared losses after the Tokyo fix as the stronger Tankan and weaker euro combined, closing around Y100.50. Into Europe and USD/JPY extended the corrective pullback off late Asian lows to Y79.65. Exporter supply weighed, before dollar ground higher and settled in a tight range. Late news from the Finnish government that Finland and Holland will block ESM bond buying in secondary markets pressed to Y79.52 as headlines continue to drive markets. EUR/JPY tracked EUR/USD on the open and lifted to Y100.55, profit take sales counteracted by sharp offshore demand recovered to Y100.80. The cross slipped to Y100.44 in late dealings on the earlier mentioned Finland statement.
EasyForexNews Research Team