Opened in early Europe at Y80.35 and Y106.20, USD/JPY opened in Asia at Y80.10 and headed higher to Y80.26 in light flow With many Japanese houses maintaining skeleton staff due to the Golden Week holidays. The rate pared early gains before running into Japanese name demand around the fix and triggered stops through Y80.30 to highs of Y80.41. EUR/JPY spiked to Y106.36 highs late in the session as USD/JPY rallied. The buoyant tone continued in Europe and dollar-yen extended gains to Y80.61, flushing stops on the move. The pair eased to Y80.45 on profit take sales, slipping further on weak European data to Y80.26. Trade continued sideways and will be looking to hold above Y80.00 through NY. EUR/JPY headed higher to Y106.54 in early dealings on Middle-Eastern demand in EUR/USD, before easing on profit take sales. A flurry of weak European PMI data pressed to Y106.15, weaker than expected German/Italian employment data added weight and the cross spiked through Y106.00, flushing stops to Y105.48 lows. Rate met technical support and lifted to Y105.63 ahead of NY.
EasyForexNews Research Team