Opened in Asia at Y82.52 and after a brief push up to Y81.67 fell back on more general risk-off sentiment led by crosses following the 1st round French presidential elections at the weekend and a break down in austerity budget talks in Holland. Dollar eased further on EUR/JPY supply through Y81.40 to lows of Y81.26 before settling in the Y81.30’s. EUR/JPY fell to Y107.14 from Y107.80. Into Europe and USD/JPY tracked the crosses lower, flushing stops through Y81.10 and Y81.00 to lows of Y80.97. Rate made an attempted recovery and bounced to Y81.10, before easing back and trade heavy ahead of NY. Middle-Eastern supply pressed the cross through Y107.00 to Y106.80 in early dealings. The rate extended losses on release of weaker than expected German flash mfg PMI data, flushing stops through Y106.50 to session lows Y106.36. The pair met good demand in the dip and lifted back to Y106.70 but was unable to sustain momentum and eased to Y106.50.
EasyForexNews Research Team