Opened in early Europe at Y80.20 and Y105.46, USD/JPY again tied to a tight range in Asian dealings Friday, as Japanese markets remained closed for the “Golden Week” holidays. Opening around Y80.28, the pair headed lower on cross yen sales from Asian names to print lows of Y80.13, before trading sideways for the remainder of the session. EUR/JPY opened lower and was contained in a tight Y105.33-57 range lacking direction. In Europe and the quiet theme continued with dollar-yen stuck in a very tight Y80.14-20 range. The cross opened flat before slipping on exporter flow to Y105.40, the rate extended losses on leveraged supply to print Y105.21 lows. Dealers reported of light volumes and the pair recovered on some profit take demand to sit mid-range around Y105.35. Traders eagerly await the US jobs report at 1230GMT. Another soft data release could open the door for further talks over QE3 and test technical support at Y79.64/63 from the 1st May low, 100 Day MA.
EasyForexNews Research Team