Opened in Asia at Y82.58 having suffered a sharp fall from Y83.47 to Y82.33 yesterday as the dollar wilted under the strain of some heavy cross sales following weak PMI data from China and Europe. weak short positions were squeezed out this morning in Tokyo as fixing demand led a recovery from early lows of Y82.51 to Y82.95. The dollar move hauled EUR/JPY higher from Y108.89 to Y109.48 as EUR/USD remained largely static. Early dollar demand lifted the pair to Y82.86 in Europe before the mini rally stalled, running into strong supply and falling sharply to Y82.58. Trade was then seen fairly muted and contained in a tight 10 pip range, closing in London around Y82.66 on a heavy tone. EUR/JPY headed higher on the open, tracking sharp EUR/USD demand from Russian/Swiss names to Y109.75, flushing stops on the move. Some profit taking eased to Y109.45, before dip buying emerged lifting the rate back to fresh id highs Y109.83. The pair was unable to maintain gains and settled mid-range around Y109.50 ahead of NY.
EasyForexNews Research Team