Opened in early Europe at Y78.92 and Y96.95, opened in Asia at Y78.80 and traded sideways with a quiet start seen across the board. The pair later spiked to Y78.99 highs mid-session, following renewed jawboning from Japanese officials. Finance Minister Azumi warned speculators about getting too long of the yen at these levels. Azumi also noted the yen rise due to speculation and officials were ready to act on excessive currency moves. However, the pair was unable to break above Y79.00 and settled around Y78.90. EUR/JPY tracked the move and lifted to Y97.23, later easing to Y97.00. USD/JPY headed lower on the European open before a change in sentiment spiked the rate back through Y79.00 to Y79.05. Profit take sales eased before a second wave of demand lifted to Y79.10 as dealers eye IMM stops noted on a break of Y79.20. EUR/JPY once again tracked the move, initially slipping to Y96.89, before bouncing to Y97.10. A well received Spanish auction boosted the cross, later easing to Y97.25 on weaker than expected German ZEW survey data.
EasyForexNews Research Team