Opened in early Europe at Y78.78 and Y97.12, opened in Asia at Y78.75 and consolidated gains after release of strong US Retail Sales data. A rise in US yields and reported Gotobi demand from Japanese importers around the Tokyo fix extended to Y78.90, before meeting exporter supply. The pair eased to Y78.80 and settled in a tight range as flow remained light for the Obon holidays. EUR/JPY opened at Y96.98 and mirrored the dollar move on leveraged demand and short covering to Y97.23, later easing on exporter sales to Y97.10. USD/JPY lifted on the European open to Y78.90, led higher by sharp cross demand. Rate extended gains and flushed some stops to Y78.99, later easing to settle in a tight range. Strong offers/stops seen at Y79.00, through here and more stops from CTA’s on a break of Y79.05, ahead of key tech resistance at Y79.19 (200 Day MA). EUR/JPY opened sharply higher on strong EUR/AUD demand to Y97.42, rate failed to extend gains and settled around Y97.35 ahead of NY. Exporter offers seen at Y97.50, more behind at Y97.60.
EasyForexNews Research Team