Opened in early Europe at Y78.15 and Y96.25, opened in Asia at Y78.10 and initially showed early gains to Y78.17 ahead of China PMI data, before coming under pressure on release of weaker than expected numbers that had expanded at the slowest pace in 8 months. Stops were flushed through Y78.00 on the move to print lows of Y77.91 where the pair met strong demand from reported semi-officials and bounced to Y78.00. EUR/JPY ground lower through Asia holding around Y96.00, before falling in tandem with USD/JPY on weak China PMI data to Y95.70. Dip demand lifted to Y95.90 and the rate extended gains to Y96.05. Early US name demand lifted USD/JPY to Y78.17 on the European open, rate extended to Y78.22 on sharp gains in the cross. Profit take sales eased and the pair continued in a tight range ahead of the NY open and key FOMC rate announcement. Sharp fund demand for a US name lifted EUR/JPY to highs of Y96.46 where the rate stalled and met strong resistance. The pair slipped further to Y96.05 on comments from ECB Weidmann, later recovering to settle around Y96.20.
EasyForexNews Research Team