Opened in early Europe around Y78.38 and Y98.17, USD/JPY closed in NY at Y78.33 after getting squeezed to a high of Y78.41 in this session after failing earlier in the day to clear back under Y78.00 (Europe low Mon Y77.988). Trade in Asia was confined to a tight Y78.28-40 range, traders noting decent demand in place between Y78.10/00, one referring to interest as ‘stealth bids’. Offers remained into Y78.50 with stops above. FinMin Azumi would not comment that today’s G7 teleconference would produce a statement. EUR/JPY closed in NY at Y97.926, and after an initial dip to Y97.87 pushed up to a session high of Y98.27 on euro strength/USD/JPY consolidation. A reversal in the view on risk in early Europe, from risk-on to risk-off, saw funds move back into yen, dollar-yen getting pressured down to Y78.12, while EUR/JPY, which also felt weight from a declining EUR/USD, pressed down to Y97.05. Yen retained a firm tone ahead of the New York open, but was holding off best levels as markets remain wary of the threat of intervention.
EasyForexNews Research Team