Opened in early Europe at Y80.43 and Y101.03, opened in Asia at Y80.25 and slipped to Y80.01 on reported hedge fund/exporter supply as Japan fiscal woes were again in the headlines. Dollar bounced after the Tokyo fix on real money demand and triggered stops through Y80.30, rate extended gains to fresh 5 week highs of Y80.52, later easing on profit take sales. EUR/JPY mirrored the move and pressed to Y100.38, before recovering to Y101.13 late in Asia. Into Europe and USD/JPY saw light flows in a quiet European morning session with the rate stuck in a tight Y80.23-45 range. Dollar ground lower on profit take sales with key technical support seen at Y80.16 from the Ichimoku cloud base, ahead of strong demand at Y80.10. The cross eased to Y100.65, before bouncing on dip demand, reported sovereign names on the bid boosted sentiment and the rate recovered to Y100.90. Rate tracked EUR/USD off highs to settle around Y100.75 with strong demand seen into Y100.50.
EasyForexNews Research Team