Opened at Y82.90 in Asia and after a small blip up to Y82.97 fell back sharply on cross sales into the fixing amid thin year end trading. Dollar tumbled, the move initially on exporter sales before cross flows also clicked in sending the pair to Y82.54, later recovering to Y82.71. EUR/JPY was hit by Japanese investors falling back from Y110.52 to Y109.97. USD/JPY pressed lower on the European open, triggering stops through 82.50 to Y82.45. Leveraged account demand lifted the pair off lows, but the attempted recovery ran into model sellers and the rate slipped to Y82.24. Trade was then confined in a tight 20 pip range, closing the morning around Y82.35. EUR/JPY ran into real money sales on the open and slipped to Y109.65, flushing stops on the move. Profit take demand lifted the cross off lows, and aided by better than expected German employment data bounced to Y109.95. The mini rally was unsustainable and the cross headed lower, tracking EUR/USD supply through Y109.50, tripping stops to print Y109.22 and remain heavy.
EasyForexNews Research Team