USD/JPY had recovered off the European low area as the dollar held a cautiously upbeat tone while EUR/JPY orbited Y100.50 area with little direction, and dollar highs were notched at Y79.83 around the ECB fixing before the pair stalled in front of offers above Y79.90. Both pairs traded sideways into mid-morning before release of sub-50 ISM index sent risk-appetites and the dollar skidding lower, USD/JPY slicing to Y79.45 in a sharp move as EUR/JPY broke under Y100.00 to flush stops. Losses extended to Y79.31/99.76 around the London fixing before the pair was cushioned by strong bids at Y79.30, rebounding to Y79.50 before stalling late in the day as EUR/JPY returned to Y100.00 to hold nearby into day’s end.
EasyForexNews Research Team