Opened in early Europe at Y78.36 and Y96.31, USD/JPY opened in Asia around Y78.43 and nudged higher on investor demand, dealers reported of continued light volumes and the rate pared gains on release of weaker than expected June Industrial Production
data. The rate extended losses and closed the session at Y78.35 lows. EUR/JPY opened flat in Asia and after some light Japanese name sales eased to Y96.25, the pair made an attempted recovery to Y96.40 before running into decent offers and sit in a tight range. Strong yen sentiment continued into the European open and the rate pressed to Y78.26. A second wave of cross sales extended losses to Y78.12, before tapping higher to Y78.18 as traders wary of shallow bounces. EUR/JPY opened heavy and eased to Y96.15, before swiss name demand in EUR/USD pared early losses. The cross was unable to maintain gains and ground lower through Y96.00, extending losses to Y95.76 on reaction to a soft Italian auction, later bouncing to settle around Y95.95.
EasyForexNews Research Team