Opened in early Europe at Y76.73 and Y99.12 in what proved to be another very quiet session with the pair failing to break out of a Y76.65-78 range. Further pressure built on the euro-yen after the Tokyo fixing, with the pair falling from early highs of Y99.35 to Y99.09 before strong Japanese bids ahead of Y99.00 stops deterred further losses. USD/JPY continued on from Asia trading a tight Y76.71-89 European range. Opening around Y76.73 and climbing throughout the session to Y76.89 with EUR weakness seen across the board. EUR/JPY lifted on the open to Y99.35, momentum was however short lived and the EUR came under pressure, slipping to Y99.10 on weaker than expected German Retail sales. The cross pressed lower to Y98.80 on rumours of a Major German bank may need to raise capital, easing further on French sales to Y98.57 and fresh 11 year lows. The pair ran into corporate demand and aided by real money bounced to Y98.70 ahead of the NY open. All eyes remain on EUR/USD for market moves as the EUR continues on a soft footing.
EasyForexNews Research Team