Opened in early Europe around Y79.80 and Y103.56 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 taking 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. EUR/JPY recovery was capped at Y104.00, with rate holding back at Y103.85 into NY. USD/JPY was holding Y79.75/80.
EasyForexNews Research Team