USD opened in Asia at Y81.15 this morning after a strong rally yesterday following Fed Bernanke’s testimony which dampened any hopes of QE3. Tokyo names and a firmer euro helped a rise to Y81.40 in early trade before exporters and investors seized on the opportunity to unload some longs, pushing the pair back down through Y81.00 to Y80.84. EUR/JPY was relatively tame slipping back from early highs of Y108.46 to Y107.89 before holding around Y108.00. Into Europe and USD/JPY lifted to Y81.15 on early macro demand before sliding on profit take sales through Y81.00 to Y80.92. Dip buying emerged and aided by sharp EUR/USD gains the pair tracked higher to Y81.17, later easing to Y81.10 and settle in a tight range. EUR/JPY pressed lower on the open, sliding to Y107.69 before bouncing back sharply through Y108 to Y108.05 on Eastern European demand. The cross was given an added boost from corporates and lifted to intraday highs Y108.32, before running into a wall of offers and easing to Y108.05 ahead of NY.
EasyForexNews Research Team