Opened in early Europe at Y79.50 and Y97.71, opened at Y79.55 and slipped in light flow to Y79.47 ahead of the Tokyo fix. Dollar recovered and was tied to a tight Y79.47 – Y79.60 range with little to move the pair. Traders noted staff reshuffles at the MOF forex division, with new hire seen as “intervention specialist”, prompting market chatter. EUR/JPY also traded lower and mirrored EUR/USD throughout the session, settling around Y97.70. USD/JPY opened heavy in Europe and pressed lower on sharp exporter supply to Y79.36. Rate made an attempted recovery before running into a second wave of selling from model names, flushing stops to lows of Y79.21. Reported large agricultural name demand seen at Y79.20 cushioned the move and USD settled at Y79.35 ahead of NY. EUR/JPY slipped in tandem flushing stops to Y97.31, before tracking a sharp bounce in EUR/USD to Y97.85 as risk sentiment returned to markets. Strong offers seen into Y98.00, ahead of Y98.20.
EasyForexNews Research Team