Opened at Y82.32/108.28 after Y82.10/93 and Y108.07/109.70 overnight ranges. Yen was in demand overnight amid a liquidation of yen funded risk trades that continued in the wake of the FOMC minutes. Dollar had found a base around Y82.10 ahead of the US session but euro losses extended to Y107.91 in early US dealings after early US data delivered fresh pressure on euro. From there, market turned more dollar-centric, USD/JPY lifting to Y82.45 area around that data release on model fund buying while EUR/JPY lifted to Y108.40 area. USD gains continued through the morning, albeit hesitantly, USD/JPY lifting to near Y82.70 by the London close at midday while EUR/JPY lifted to Y108.60 before stalling. Afternoon dealings saw the dollar settle back slightly, easing to Y82.45 by late in the day while EUR/JPY held above Y108.40.
EasyForexNews Research Team