Opened in early Europe at Y79.34 and Y97.33, opened in Asia at Y79.40 and slipped on mild risk aversion flushing stops to Y79.24, rate picked up after the Tokyo fix to Y79.35 and settled in a tight 10 pip range. Traders remain on the sidelines ahead of the BOJ policy outcome, with divided opinion on possible additional easing. EUR/JPY headed lower in tandem to Y97.10 and found decent support ahead of strong Y97.00 demand, recovering to settle around Y97.30 in thin markets. USD/JPY continued quiet in Europe trading a tight Y79.22-37 range. The pair opened flat before pressing lower on broad dollar weakness, sharp cross supply added weight to print Y79.22 session lows. Demand ahead of reported strong agricultural bids at Y79.20 recovered to Y79.26 and sits heavy into NY. The cross dipped to Y97.13, before tracking a sharp bounce in EUR/USD to Y97.47. Rate was unable to hold gains and reported semi-official supply eased to settle around Y97.30.
EasyForexNews Research Team