Yen crosses opened the Asian session heavy, a returning Japanese market taking advantage of Monday’s softening in the yen to sell back into dollar-yen and euro-yen. The anti-Japanese climate in China saw Japanese firms closing which in turn put downside pressure on Japanese equities into the open. Euro-yen was pressed down from an early high at Y103.26 to Y102.78, while dollar-yen eased off from Y78.75 to Y78.48. The recovery in Japanese equities, on back of demand for tech industry and oil/gas companies allowed yen pairs to pare losses with dollar-yen recovering to the Y78.70 area, while euro-yen made a show back above Y103.00 but the early general downside pressure on the euro weighed back to take it back to Y102.90 in current trade. Dollar-yen demand remains in place between Y78.50/30 with offers noted from Y78.80 through to Y79.00. Euro-yen bids Y102.60/40 vs offers at Y103.40-60. BOJ meeting Wednesday the next domestic focus.
EasyForexNews Research Team