Closed in NY at Y78.60, off earlier Y78.79 highs as the rate met strong supply from exporters. Asian trade opened flat, before sharp
yen demand ahead of the Tokyo fix weighed to Y78.50. Support met in the dip and aided by some decent cross demand recovered to Y78.60 where rate settled in a tight range. There was an unexpected rise in Japan’s IP data, the release showed an increase to a seasonally adjusted 0.4%, from -0.1% last month. Strong resistance seen at Y78.80, more behind at Y79.00 with stops set on a break. Support seen at Y78.50 and Y78.30/20, stronger layered bids set through to Y78.00. EUR/JPY closed in NY at Y96.70, off earlier Y96.99 highs. The cross was tied to a narrow range with little in the way of real money flows. The pair slipped in tandem with USD/JPY to Y96.51 ahead of the fix, before meeting decent demand interest to Y96.70, late profit take sales eased but the rate will look to consolidate above Y96.50 for the next leg higher into Europe. Reported offers at Y97.00, a break opens Y97.30. Support seen at Y96.50 and Y96.30, stronger behind at Y96.20
EasyForexNews Research Team