Closed in NY at session highs Y78.50 on broad USD demand following the Fed announcement of no new policy, a report from the IMF that said Japan needs to ease further in order to beat deflation aided the move. USD/JPY opened flat in Asia around Y78.40, before catching a bid tone and lifting to Y78.54 after the Tokyo fix. Traders noted of profit taking off highs as the pair consolidated post FOMC gains. USD settled in a tight range, last at Y78.45 ahead of Europe. Resistance seen at Y78.55, with stops set on a break of Y78.70. On the downside bids at Y78.30 and Y78.10, stronger behind at Y78.00. EUR/JPY closed in NY at Y95.95, having recovered off Y95.80 lows. The cross ground higher in early Asian trade but was unable to make a clean break of Y96.00, Japanese name supply pressed and the pair looked to re-test NY lows. Dip demand lifted and the cross extended recovery pullback gains through Y96.00 to print Y96.17 highs. Reported offers at Y96.30, stronger at Y96.50. Support seen at Y95.80, ahead of Y95.50.
EasyForexNews Research Team