Opened in early Europe at Y78.33 and Y94.95, opened in Asia at Y78.27 and saw modest gains ahead of the Tokyo fix. Comments from Japanese FinMin Azumi that the government does not exclude any steps to combat excessive yen gains was largely ignored and the rate slipped to Y78.20. Demand in the dip from macro accounts recovered to Y78.30 and settle in a tight trading range. EUR/JPY opened lower around Y94.85 on reaction to the news that Moody’s had revised outlook change to negative for some core eurozone countries, including Germany. The pair however failed to gain momentum and was stuck in a tight 20 pip range for the session. Into Europe and dollar-yen ground lower as safe haven demand in yen continued. The pair extended losses to Y78.10 on Asian name supply, before Japanese name bids cushioned the fall and recovered to Y78.20. The cross opened heavy and eased to Y94.70 in early dealings, later bouncing to Y94.90. EUR/USD supply weighed on recoveries and aided by weak German flash mfg PMI data printed lows of Y94.44, before dip demand lifted back to Y94.60 ahead of NY.
EasyForexNews Research Team