Opened in early Europe at Y78.55 and Y96.52, asian trade opened flat, before sharp yen demand ahead of the Tokyo fix weighed to Y78.50. Support met in the dip and aided by some decent cross demand recovered to Y78.60 where rate settled in a tight range. There was an unexpected rise in Japan’s IP data, the release showed an increase to a seasonally adjusted 0.4%, from -0.1% last month. EUR/JPY was tied to a narrow range with little in the way of real money flows. The pair slipped in tandem with dollar-yen to Y96.51 ahead of the fix, before meeting decent demand interest to Y96.70, late profit take sales eased. Into Europe and dollar-yen opened on a heavy tone, sharp cross sales led the pair to Y78.40, before making an attempted recovery to Y78.50. Tight range trade continued ahead of NY with decent demand scattered down to Y78.00. EUR/JPY sales from the off and aided by real money/US investment house supply in EUR/USD printed lows of Y96.15. Cross saw a decent bounce to Y96.40, later easing to Y96.30 and sit heavy into NY.
EasyForexNews Research Team