Opened in early Europe at Y79.55 and Y99.71, opened in Asia around Y79.55 and lifted to Y79.64 ahead of the Tokyo fix, following a slight increase to 4.6% in the April unemployment rate. Exporter supply capped and the rate fell back on usual month end sales flow, extending losses to Y79.42 on cross yen supply. Sentiment turned and the pair made an attempted recovery to Y79.56 with traders reporting of continued light volumes. The cross eased to Y99.50 lows, before tracking EUR/USD demand to Y99.75, with real money attributed to the move. Dollar-yen continued in Europe on a quiet tone with trade stuck in a tight Y79.45-56 range. Importer demand provides support at Y79.35/30, with the Asian high at Y79.64 capping moves on the topside. EUR/JPY opened flat before a sharp bounce from leveraged accounts gave the cross a boost, rate extended gains on Middle-Eastern EUR/USD demand to Y99.94 highs where the rate met strong supply and eased to Y99.85. The pair continued to grind lower closing the session around Y99.70 with support seen at Y99.50.
EasyForexNews Research Team