Opened in early Europe at Y80.13 and Y106.15, USD/JPY opened in Asia at Y80.25 and headed lower to Y80.11 triggering stops on the move, before finding some support from hot money names covering shorts. A modest bounce of the lows saw the pair at Y80.18 as volumes remained light for the annual “Golden Week” holidays. USD/JPY lifted to Y80.21 in early European dealings before running into leveraged sales and easing to Y80.10. Trade was then confined in a tight 10 pip range and remains heavy with strong bids seen ahead of the reported Y80.00 option barrier. EUR/JPY tracked early EUR/USD demand to Y106.33 before stalling on Asian sovereign supply to Y106.15. The cross extended losses to Y106.00 following release of higher than expected M3 data, dip buying emerged and the pair recovered to Y106.10. The underlying tone remains heavy and the cross grinds lower to Y106.05 at typing with stops set on a break of Y106.00, more through Y105.80 and Y105.70.
EasyForexNews Research Team