Opened in early Europe at Y79.45 and Y100.05, EUR/JPY was the stand-out in Asian trade Friday, powering higher as EU officials outlined some short-term fixes for the Spanish and Italian borrowing cost issues. The pair was trading around Y98.60, rangebound, before spiking to Y100.22. Stops were triggered at various levels on the bounce, with hot money accounts chasing the cross higher. USD/JPY ended lower and settled at Y79.30, despite being tied to a fairly narrow range. USD spiked in early European trade as yen sentiment turned, the rate printed Y79.74 before meeting exporter supply and easing lower. EUR/USD and large cross-yen sales added weight and the pair slipped to Y79.40. Technical support seen on the downside at Y79.33 from the 21 Day MA, ahead of the Kijun line at Y79.14. The cross headed higher to print Y100.52, before paring gains and settled around Y99.90. Strong demand reported at Y99.70/65, a break opens more bids at Y99.50, with stops set (Y99.51 – 21 Day MA).
EasyForexNews Research Team