The pair sat heavy in thin European trade and closed near session lows at Y78.26. Rate opened in Asia at Y78.30 and was led higher through the Tokyo fix on strong cross yen demand to Y78.43, later easing to settle around Y78.35. Support seen at Y78.20, through here opens reported semi-official demand at Y78.10/00 (Y78.07 – Support line from 1 Jun), with stops set. Strong offers seen at Y78.45/50 (Y78.47 – 5 dma), more behind at Y78.60 ahead of Y78.71 (21 dma). Euro-yen mirrored the euro-dollar spike in Europe yesterday following reports that Draghi would back up buying sovereign bonds to Y98.70, later paring gains to close around Y98.55. The cross opened in Asia at Y98.60 and early demand from a Japanese trust name lifted through the fix, extending gains in tandem with euro-dollar to highs of Y98.99, before meeting resistance and easing to Y98.85. Strong offers seen into Y99.00 with stops set, more stops on a break of Y99.20/30 ahead of offers at Y99.45/50.
EasyForexNews Research Team