Opened in early Europe at Y79.29 and Y96.73, opened in Asia around Y79.30 and lifted to Y79.40 ahead of the Tokyo fix, before easing back to settle in a tight range with Japanese officials again jawboning, underlining the risk of intervention on a move lower. Very strong support remains through Y79.20/00 with reported semi-officials sitting on the bid. EUR/JPY was unable to break back
above Y97.00 and traded a Y96.56-76 range, the pair continues heavy due to deleverageing and support comes in at Y96.50. Into Europe and the quiet theme continued with USD/JPY stuck in a Y79.22-31 range and now looks to NY for direction. The cross also rangebound, tracked EUR/USD moves, and after an early squeeze to Y96.57 bounced off lows and extended gains to Y96.82 on release of a decent Italian auction. Profit take sales eased and the pair settled around Y96.70 in continued light flows.
EasyForexNews Research Team