Opened in early Europe at Y79.76 and Y100.43, opened in Asia at Y79.80 and ground higher to Y79.89 in thin trade with many players on the sidelines ahead of Independence day in the US. The pair ran into strong exporter offers and slipped after the Tokyo fix to Y79.75, extending losses on sharp cross yen sales to Y79.59. Dollar made an attempted recovery and settled around Y79.75. EUR/JPY opened at Y100.60 and pressed lower to Y100.23 on the back of selling from Japanese banks and securities houses and was linked by some sizable German Bund redemptions expected this week. Later bouncing to Y100.40 ahead of Europe. Dollar-yen trade was hemmed into a tight European Y79.69 – Y79.82 range, lacking direction. Support seen from the 5 Day MA at Y79.66, with strong offers from exporters at Y80.00, capping moves. The cross tracked early EUR/USD slippage to Y100.27 as traders reported of continued light flow, later bouncing to Y100.40. Technical support seen at Y100.19 from the 5 Day MA, the Asian high seen capping moves at Y100.67.
EasyForexNews Research Team