Opened in early Europe at Y78.23 and Y96.17, opened in Asia at Y78.20 on a bid tone and lifted to Y78.35 on early demand in the crosses, strong supply met and the rate pared gains as traders reported decent 2 way flow from Japanese banks. USD continued sideways with trade stuck in a tight 10 pip range. EUR/JPY opened at Y96.05 and consolidated sharp European gains. The cross squeezed to Y96.20, later easing on profit take sales and held above Y96.00 on unsubstantiated market talk of a momentum fund. Risk appetite continued into Europe and USD/JPY opened higher to Y78.38, the cross followed suit and triggerd stops on the move to Y96.51. Profit take sales eased, before headlines from BUBA hit the wires that they have not changed their view on ECB buying bonds, weighed heavily on markets. EUR/JPY slipped to Y95.65, dollar tracked the move to 78.13. Further headlines from BUBA still opposing ESM a banking license gave markets a slight boost, however bounces were shallow and the pairs sit heavy ahead of NY.
EasyForexNews Research Team