Opened in early Europe around Y79.40 and Y101.51, USD/JPY was confined to a tight Y79.27-46 range through Asian dealing, with rate favouring the topside into early Europe. EUR/JPY was contained within Y101.446-101.77 with only interest of note was Japanese sales of AUD/JPY after the Tokyo fix in a generally subdued overnight session. USD/JPY was seen over sold into early Europe with rate quickly pressuring toward Y79.50 with real money the only notable sellers into the rise. EUR/USD breaking above $1.2800 aided risk and USD/JPY extended rally to challenge offers at Y79.60/65, the move taking EUR/JPY to Y101.75. Fitch downgrading Japan to A+, outlook negative added pressure on yen, taking USD/JPY on to Y79.83, while EUR/JPY pushed up to Y101.93. However, the Fitch move added further negative risk weight which weighed on EUR/USD and reversed EUR/JPY back to Y101.65, USD/JPY easing back to Y79.70. USD/JPY offers remain qat Y79.80 through to Y80.00. bids Y79.10/00. EUR/JPY has strong offers placed toward Y102.00, bids Y101.00-1.0085.
EasyForexNews Research Team