Opened in early Europe at Y78.57 and Y96.46 Opened in Asia at Y78.80 and slipped ahead of the Tokyo fix on Japanese name supply. The pair extended losses, flushing stops to Y78.47 as dealers noted unwinds of long positions by trading accounts, as BOJ/MOF action still proves elusive to dips. USD bounced to Y78.55 and settled in a tight trading range. EUR/JPY traded a similar pattern to USD/JPY, the rate pressed to Y96.43, later recovering to Y96.55. USD/JPY continued in Europe on a quiet theme with trade stuck in a very tight Y78.55-Y78.67 range, lacking direction. EUR/JPY opened firmer and tracked sharp EUR/USD gains on reported US name demand, triggering stops to print Y96.82. Profit take sales eased and the pair settled around Y96.65. A poor Spanish auction weighed on the euro once again as risk aversion took hold of markets, the cross slipped to Y96.42 where the rate met support from the Asian low and recovered to Y96.60. Traders note of shallow bounces ahead of the NY open.
EasyForexNews Research Team