Opened in early Europe at Y77.80 and Y102.01 – Another quiet session for USD/JPY traders in Asia after the pair recovered from NY lows of Y77.71. The USD opened this morning at Y77.88 and failed to break above Y77.90 before heading lower again. The move was somewhat cushioned by EUR/USD real money demand which pulled EUR/JPY up to Y102.20 from Y101.79 encouraging some short covering from NY lows of Y101.62. Later cross sales then took the dollar back down to Y77.76 as the EUR/JPY eased back to Y101.96. The quiet theme continued in Europe with USD/JPY trading a tight Y77.69-83 range. EUR/JPY had a choppy session, slipping on the open to Y101.88, before tracking euro-dollar and bouncing to Y102.15 on Middle-Eastern demand. The cross traded flat as markets awaited the ECB’s 3-year LTRO results. Expectations came in higher than forecast and the cross spiked to session highs Y102.53, before an equally quick reversal to Y102.38. The rate pared further gains to settle around Y102.15 ahead of the NY open.
EasyForexNews Research Team