Opened in early Europe at Y79.45 and Y99.05, Opened in Asia at Y79.45 and gained 10 pips on headlines from BOJ’s Yamaguchi warning of further easing if EU risks materialise and BOJ’s Shirakawa warning of risks to the growth outlook. USD traded sideways with some corporate demand seen but exporters cushioned the move, before grinding lower to settle around Y79.45. EUR/JPY lifted to Y99.30 on the open before a wave of cross-yen sales pressed to Y98.94, later recovering to Y99.05. Dollar-yen opened flat in Europe, before easing 10 pips as market sentiment turned. Rate extended losses and continued euro slippage pressed dollar to Y79.20, a weaker than expected Italian auction added weight to Y79.01 lows. Key technical support/Asian sovereign demand seen protecting the Y79.00 barrier. The cross saw some early demand and lifted to Y99.17, before a wave of EUR/USD sales and a break of the $1.2450 barrier dragged to Y98.66. The pair made an attempted recovery but further euro supply and the weak Italian auction took out the Y98.50 barrier, flushing stops to lows of Y98.27.
EasyForexNews Research Team