Closed in NY Tuesday at Y78.60, off Y78.73 highs driven by real money demand. USD/JPY ground higher on the Asian open before running into exporter offers around the Tokyo fix, the pair stood firm at Y78.50 and continued in a tight range ahead of Europe. Dollar continues to find support on the downside with few yet prepared to test the resolve of Japanese authorities, as traders look to the BOJ monetary policy statement tomorrow for further signs of easing. Resistance seen at Y78.75/80, stronger behind at Y79.00 with stops set on a break. Support seen at Y78.50, through here opens bids at Y78.30 ahead of Y78.15/10. EUR/JPY closed in NY at Y97.45 having eased off Y97.81 highs. Exporter offers weighed in early trade and the cross printed Y97.24, before bouncing around the fix to Y97.40. Trade volumes continued light and rangebound ahead of Europe. Support seen at Y97.25/20, stronger behind at Y97.00. Reported offers at Y97.50, a break opens Y97.80/90 (Y97.82/88 – 7 Aug high, 50% retracement of July pullback). Stronger offers behind at Y98.00 with stops set.
EasyForexNews Research Team