Opened in early Europe at Y79.97 and Y103.05, Opened in Asia at Y79.94 and headed higher on comments from PM Noda warning that all options were on the table for dealing with the strong yen. Dollar grinded higher through Y80.00 to Y80.12 before sharp sales in the yen crosses pressed to Y80.00 and settle in a tight 10 pip range. EUR/JPY lifted to Y103.37 highs before running into strong supply from CTA’s, Funds and Japanese corporates and slipped to Y103.20. Rate extended losses to Y103.05 as Greek uncertainty continued to weigh on markets, with any recovery attempts seen shallow. In Europe USD/JPY bounced on the open to Y80.18 on broad dollar sentiment before paring gains on cross sales to Y80.10, the pair ground lower through the session holding above Y80.00 ahead of the NY open. EUR/JPY tracked EUR/USD moves with early sales soaked up and holding above Y103.00. Strong demand lifted the cross to print Y103.30 highs before an equally quick move pared back gains. Further Greek headlines boosted the pair
but the underlying tone remains heavy, closing around Y103.00.
EasyForexNews Research Team