Opened in Asia at Y83.40 after highs of Y83.94 on Friday were pared back on poor US CPI, IP data that sparked broad based dollar weakness and strong profit taking from leveraged names. After early lows of Y83.36, the USD was pulled higher by cross buying to Y83.57 led by EUR/JPY which finally took out the Y110 barrier and stops through Y110.05/10 to highs of Y110.15. The cross then fell back to Y109.75 taking dollar back down to Y83.36. USD/JPY headed sharply lower on the European open as US treasuries were hit flushing out stops through Y83.10 to Y83.06. USD traded flat before pressing lower on Asian sovereign supply to Y83.02, the rate met strong demand from Eastern European names and lifted to Y83.15 ahead of NY. EUR/JPY tracked EUR/USD sharply lower to Y109.18, before meeting Asian sovereign demand and recovering to Y109.35. The cross traded heavy and pressed lower on model account sales to Y109.20, before dip buying emerged to Y109.40 late into the session.
EasyForexNews Research Team