Return of Japanese markets from their Golden Week holidays saw traders attracted into yen as market reacted to the Eurozone election results over the weekend causing risk off sales in EUR/JPY and USD/JPY. EUR/JPY led the move lower, strong sales took this rate from an opening high of Y104.30 to lows of Y103.238, taking USD/JPY from Y79.981 to Y79.64 (100-dma), though demand from Japanese importers for USD/JPY did act to cushion the move in this pair. EUR/JPY recovered in line with EUR/USD, edging back to the Y103.80 area into Europe, while USD/JPY bounced back to Y79.80. Support in USD/JPY remains at Y79.64, with bids seen from here and extending into Y79.50. Resistance Y80.00/10, further offers seen toward Y80.25/30 and Y80.50/55. EUR/JPY bids remain in place at Y103.25 through to Y103.00. Resistance Y104.00, stronger into the Asian high at Y104.30. London closed for May Bank holiday expected to make for thin, possibly volatile markets during the European session with developments on the weekend elections to provide the main driver of direction.
EasyForexNews Research Team