Opened in early Europe at Y79.11 and Y96.85, opened in Asia at Y79.15 and with Tokyo closed the pair traded a very tight Y79.06- Y79.32 range, with some suggesting the perception of reduced intervention risk due to the holiday. EUR/JPY largely tracked EUR/USD, lifting to Y97.11 before the pair ground lower on offshore supply to Y96.78 and sat heavy ahead of Europe. USD extended losses into the European open and slipped through Y79.00 to Y78.96, flushing stops on the move. Investor demand lifted off lows but with recovery attempts seen shallow, large cross yen supply pressed dollar back through Y79.00. Real money sales and a reported Swiss bank added weight to Y78.91, later bouncing to Y78.98. EUR/JPY headed lower on the open to Y96.60, sharp EUR/USD supply pressed the cross through Y96.50, tripping stops on the move. The pair extended losses to Y96.18 with some traders suggesting weight behind the move tied to large US bond redemptions.
EasyForexNews Research Team