Opened in early Europe at Y78.24 and Y96.02, risk aversion continued in Asian trade and USD/JPY ground to Y78.09, before running into strong importer demand ahead of the reported stealth bids at Y78.00. Rate extended gains after the Tokyo fix, dragged higher by cross yen demand to Y78.20 and settled in a tight range. EUR/JPY opened heavy in light Asian trade on CTA account supply, before a bounce after the fix lifted the pair through Y96.00 on Japanese retail demand. Rate extended gains in tandem with EUR/USD to Y96.13 where the pair stalled and erased some gains on profit take sales. USD/JPY consolidated overnight gains in Europe although trade was stuck in a tight Y78.20 – Y78.30 range, looking for direction in month end flow. EUR/USD traded sideways before a look on the downside, rate pressed through Y96.00 to Y95.85, later paring losses on semi-official demand in EUR/USD. The cross extended recovery attempts to Y96.10, before profit take sales eased ahead of NY.
EasyForexNews Research Team