Closed in NY Monday at Y78.20 after pulling back from a European session high Y78.40. Risk aversion continued in Asian trade and USD?JPY ground to Y78.09, before running into strong importer demand ahead of the reported stealth bids at Y78.00. Rate extended gains after the Tokyo fix, dragged higher by cross yen demand to Y78.20 and settled in a tight range. On the topside offers seen at Y78.50, more at Y78.70. EUR/JPY closed in NY at Y95.85, off intraday highs Y96.39. The cross opened heavy in light Asian trade on CTA account supply, before a bounce after the fix lifted the pair through Y96.00 on Japanese retail demand. Rate extended gains in tandem with EUR/USD to Y96.13 where the pair stalled and erased some gains on profit take sales. EUR/JPY remains in consolidation mode with offers initially seen at Y96.50 and Y96.70. Volumes remain light as the FOMC meets (2-day starts today) and the ECB meets Thursday.
EasyForexNews Research Team