Opened in early Europe at Y79.25 and Y100.39, Opened in Asia at Y79.35 and lifted to Y79.45 on demand from Japanese importers ahead of the Tokyo fix. Comments from FinMin Azumi that speculators overreacted yesterday and that the BOJ will closely monitor rates, supported markets. The cross opened flat around Y100.75 with trade stuck in a tight range, before a wave of cross sales pressed to Y100.22 lows on further Greek debt worries. Dollar slipped in tandem to print Y79.19 lows before a modest recovery ahead of Europe. USD/JPY continued into the European open on a quiet theme where the pair traded a tight Y79.20-35 range. The Y79.00 option barrier should provide decent support on the downside. EUR/JPY continued on a heavy tone and tracked EUR/USD through barriers/stops to print fresh 3 month lows of Y100.21. Profit take demand lifted off lows and aided by real money recovered to Y100.50, Asian sovereign supply cushioned moves before a second wave of buying climbed to Y100.78 highs. The pair eased to Y100.65 where headlines continue to dominate market moves.
EasyForexNews Research Team