Opened in early Europe at Y78.45 and Y96.15, USD/JPY opened flat in Asia around Y78.40, before catching a bid tone and lifting to Y78.54 after the Tokyo fix. Traders noted of profit taking off highs as the pair consolidated post FOMC gains. USD settled in a tight range and traded around Y78.45 ahead of Europe. EUR/JPY ground higher in early Asian trade but was unable to make a clean break of Y96.00, Japanese name supply pressed and the pair looked to re-test NY lows. Dip demand lifted and the cross extended recovery pullback gains through Y96.00 to print Y96.17 highs. USD/JPY opened flat in Europe with trade stuck in a tight range. The pair eased to Y78.40 and slipped on exporter supply, extending losses to Y78.22 and sits heavy ahead of the NY open. EUR/JPY eased to Y96.00 in early trade, before tracking strong EUR/USD demand to Y96.31. Exporter supply capped the move and the rate closed the morning around Y96.10, as focus turns to the ECB policy decision and press conference.
EasyForexNews Research Team