Opened in early Europe at Y78.48 and Y97.02, opened in Asia at Y78.35 and quickly picked up a bid tone in Tokyo trade, the move up to Y78.65 aided by FinMin Azumi warning of decisive action on yen. The recovery met decent supply around the Y78.65 level and eased back to settle around Y78.40. EUR/JPY pushed higher in early Asian trade, the rate moving up from Y96.79 to Y97.12 before easing off to Y96.75 which weighed back against USD/JPY early recovery. USD/JPY opened flat in Europe with many expecting quiet markets ahead of the key US employment data. Eurozone debt concerns weighed, equities turned and the rate headed lower on cross yen sales to Y78.35, the pair extended losses and flushed stops to lows of Y78.10. USD continues heavy with key support below from the Y78.00 option barrier, a break here and BOJ intervention has been touted. The cross was dragged lower by weaker then expected Spanish PMI, EUR/USD slippage and a reported large sterling-yen sell order, through stops to fresh 11 1/2 year lows of Y96.17, later bouncing to Y96.30.
EasyForexNews Research Team