Opened in early Europe at Y78.98 and Y96.95, opened in Asia at Y79.09 and lifted on short covering to Y79.16 where the rate met decent supply and eased to settle in a tight Y78.94 – Y79.16 trading range. Release of BOJ minutes failed to inspire markets as traders still eye Japanese intervention on any move lower. The cross tracked USD/JPY and advanced to Y97.31, before paring gains to Y96.92. Into Europe and dollar-yen lifted off Asian lows through Y79.00, extending gains on cross demand to Y79.07. On the topside IMM stops noted on a break of Y79.20 and Y79.25 ahead of offers at Y79.40. Semi-official demand in EUR/USD boosted the cross to Y97.21, later easing on profit take sales. The rate was unable to maintain gains and headed back through Y97.00 on comments from Merkel that said ‘can’t be sure European project will work’. Rate extended sharp falls through support to print lows of Y96.70 and sit heavy ahead of the NY open. Reported strong demand at Y96.50, a break to Y96.41 (17 Jul low).
EasyForexNews Research Team