Opened in early Europe at Y79.76 and Y99.96, opened in Asia at Y79.90 and headed higher after the tokyo fix, Swiss and US name demand lifted the pair through Y80.00, flushing stops to highs of Y80.10. A lack of follow through and exporter supply eased and dollar extended losses to settle around Y79.80 in quiet markets ahead of key central bank meets in Europe. EUR/JPY mirrored the move lifting to Y100.34, later easing to Y99.90. USD/JPY opened flat in Europe with trade stuck in a tight Y79.56 – Y79.78 range. Weak dollar sentiment weighed in early dealings before running into demand ahead of reported strong bids at Y79.50, later settling around Y79.70. EUR/JPY opened at the top of the range and ground lower throughout as traders reported of light volumes. Sharp EUR/USD slippage weighed on the cross to Y99.55, before making an attempted recovery and lifting on dip demand to Y99.70. Strong bids seen into Y99.50 with stops set, a break opens a deeper move towards more bids/stops at Y99.00.
EasyForexNews Research Team