Opened in early Europe at Y78.13 and Y94.29, USD/JPY opened in Asia at Y78.17 and headed lower to Y78.07 as JPY safe haven demand flow continued in thin markets. Reported stealth bids protecting Y78.00 levels cushioned the move, the pair later recovered to opening levels and remained in a tight 10 pip range for the session. EUR/JPY opened heavy on Moody’s downgrading EFSF outlook to negative and printed fresh lows of Y94.14. Dip demand bounced off lows and the pair recovered with EUR/USD to settle around Y94.35. USD/JPY extended the recovery pullback in Europe and ground higher to Y78.25 amid light flow. EUR/JPY tracked EUR/USD on the open to Y94.17 and a re-test of overnight Asian lows, before spiking to Y94.60 on comments from ECB Nowotny that he sees arguments for granting the EFSF a banking license. Profit take sales eased and the pair dipped further on reaction to a weaker than expected Germany IFO survey. Strong dip demand recovered to Y94.90 and close the morning on a positive sentiment.
EasyForexNews Research Team