USD Opened in Asia at Y80.67 and came under early pressure this morning in a continuation of yesterday’s fall, but talk of semi-official bids in the Y80.50/60 zone curtailed any further falls with a low of Y80.60. Bids from Japanese funds then surfaced in the crosses and talk in the Asahi Shimbun hinting at possible further easing from the BOJ led a recovery in the yen complex. The pair pulled back up to Y80.83 before settling around Y80.75. EUR/JPY edged up from earlier lows of Y105.45 to Y105.80. USD/JPY headed higher on the European open to Y80.94, before running into strong supply from real money/fund accounts and easing to Y80.80. US custodial sales pressed further to Y80.58 where the rate met Asian sovereign demand and recovered to Y80.70. The cross continued from Asia and extended gains to Y106.17 in early trade, before a bout of profit taking eased to Y105.90. Supply continued with sharp falls to Y105.55 where the rate met strong demand and bounced to Y105.70 The pair extended recovery pullback, later settling around Y105.90.
EasyForexNews Research Team