Euro-yen fixing supply provided the early downside pressure on yen pairs, with Japanese banks the stand out sellers, this cross breaking down to an initial low of Y117.00 before extending move to Y116.87 as others added weight on reaction to Japan LDP Sec Gen Ishiba comments that a weaker yen is worrisome for some Japanese industries and firms. Dollar-yen was dragged lower in the cross driven move, meeting decent demand ahead of Y88.00 before eventually making a show below at Y87.95, but any triggered stops here were seen well soaked up. Recovery met resistance around Y88.20 with rate holding between Y88.00/20 ahead of the European open. In euro-yen, rate continued to meet decent demand below Y116.90, though recovery efforts in this pair also proved laboured, capped below Y117.30. EU Juncker warning of euro strength and Japan Amari and Ishiba warning over effects of a weakening yen seen providing the counter.
EasyForexNews Research Team