Opened in early Europe at Y79.31 and Y97.41, closed in NY at Y78.98 having recovered off pullback lows of Y78.59 following a flurry of soft US data. The pair triggered stops in early Asia and lifted to Y79.15 on Japanese name demand ahead of the Tokyo fix. Dollar extended gains on reported system funds and aided by strong US yields, eroded exporter offers all the way up to highs of Y79.35. The cross mirrored dollar-yen in early trade and spiked to Y97.40 around the fix on corporate demand. Profit take sales eased and the pair consolidated gains to settle in a tight range. Dollar-yen extended losses on the European open and ground lower throughout the session to Y79.13 as cross supply weighed on the pair. Euro-yen tracked euro-dollar moves and was largely stuck in a tight Y97.10-41 range. Slipping on the open to Y97.10 before meeting support and trade sideways. Strong demand seen at Y97.05/00, a break to Y96.85/80 (Y96.84 – 5 dma).
EasyForexNews Research Team