Opened in early Europe at Y78.44 and Y96.95, opened in Asia at Y78.31 and headed higher to Y78.45 on a positive start for equities as volumes continued light due to the O-Bon holidays. The release of BOJ minutes failed to inspire markets and the pair traded sideways for the remainder of the session. EUR/JPY opened at Y96.64 and slipped to Y96.55 on Japanese name supply, before meeting demand in the dip and rising with the dollar to Y96.80. The cross extended to Y96.95 on broad short covering in the euro and consolidated gains. Into Europe and early demand from model names lifted USD/JPY to Y78.60, profit take sales eased and the pair settled in a tight range. Offers reported at Y78.70, more behind at Y78.80 from exporters. Support at Y78.30, a break opens Y78.15/10. The cross saw sharp gains on the open and lifted to Y97.23 with real money/model accounts the stand out buyers. French name demand in EUR/USD extended gains to Y97.31, later slipping to Y97.05 on weaker than expected German zew data as traders look to NY for the next move.
EasyForexNews Research Team