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. USD extended gains on reported system funds and aided by continued strong US yields eroded exporter offers all the way up to highs of Y79.35. Strong exporter offers reported at Y79.50, a break opens technical resistance at Y79.69 from the 100 Day MA. EUR/JPY closed in NY at Y97.00 having bounced off earlier lows of Y96.53. The cross mirrored USD/JPY in early trade and spiked to Y97.40 around the fix on corporate demand. Profit take sales eased and the pair consolidated gains to sit in a tight range ahead of Europe. Strong exporter offers remain at Y97.50, more behind at Y97.60 ahead of technical resistance at Y97.82/88 (7 Aug high, 50% retracement of Y94.11 – Y101.63).
EasyForexNews Research Team