Opened in early Europe at Y79.70 and Y78.99, opened in Asia at Y79.68 and pressed lower on reaction to Friday’s drop in US yields, dollar extended losses and triggered stops to Y79.42. The pair later met strong demand in the dip from Japanese importers and recovered to Y79.65, although volumes remained light. Traders note of exporter offers capping moves on the topside towards Y80.00. EUR/JPY mirrored the move, opening lower to Y97.48, before bouncing to settle around Y97.90. Tight range trade continued into Europe with many dealers remaining on the sidelines ahead of today’s key eurogroup meeting. Late slippage eased USD/JPY to Y79.57 and the pair sits heavy ahead of NY. The cross traded flat before heading lower on EUR/USD fund supply, sharp cross sales added weight and the pair printed lows of Y97.68. On the downside strong support seen at Y97.50 with stops set, a break opens a deeper move towards technicals at Y97.35 from the 2% Moving average envelope.
EasyForexNews Research Team