Opened in early Europe at Y78.09 and Y94.55, USD/JPY opened heavy in Asia at Y78.40 and ground lower through the Tokyo fix to Y78.25. Headlines from Governor Shirakawa who warned that a strong yen and China’s slowing growth posed risks to the economy and
from FinMin Azumi repeating that the MOF are monitoring markets closely and ready to take decisive steps if needed failed to lift the pair. Sharp cross sales added weight and the rate closed at fresh 6 week lows of Y78.05. EUR/JPY continued the downward theme with a gradual decline throughout the session to 11 year lows of Y94.55 as Spanish debt woes weighed heavily on markets. Dollar-yen pressed lower in early Europe, triggering stops through Y78.00 to print Y77.94, before nudging back to Y78.05 with trade stuck in a tight range ahead of NY. EUR/JPY extended lossess to Y94.24 and fell in tandem with EUR/USD through the $1.2100 barrier. Rate bounced to Y94.45 with recovery attempts seen shallow as investors continue moving into safer-haven assets. Strong support on the downside at Y94.00 with stops set on a break.
EasyForexNews Research Team