Opened in Asia at Y76.89 and edged down from early highs of Y76.96 in thin trading due to a Tokyo holiday, to lows of Y76.82. Main interest was seen in EUR/JPY which saw some risk demand as Asian bourses picked up, leading to a EUR/USD rally and a rise in the cross from early lows of Y99.42 to Y99.82. USD/JPY traded a tight range in Europe, lifting in early dealings to Y76.88, before paring gains and easing back to opening levels. Rate climbed to Y76.85 but was unable to sustain momentum and slipped on EUR/USD demand, posting fresh lows Y76.70. EUR/JPY ran into Asian sovereign supply on the open and eased to Y99.66, before tracking EUR/USD and bouncing to Y99.90. The cross was given an added lift to Y100.10 on demand from US Investment Companies, later easing to Y99.98 in thin dealings ahead of the NY open. The cross continues in bear territory and will be looking for a close above Y100.68 (30 Dec high), seen as a key level by traders.
EasyForexNews Research Team