Opened in Asia at Y76.20 after hitting a 2012 low of Y76.03 in midday European trading yesterday. Comments from Fin Min Azumi and an uptick in US treasury yields prevented further losses. Stops are seen aligned for a break of Y76.00 ahead of some Y75.80 bids and a Y75.50 barrier. The pair traded a tight Y76.12-22 range. EUR/JPY was equally tight but helped to Y100.46 on the back of a EUR/USD bounce before slipping back to Y100.24. The quiet theme continued into Europe with USD/JPY trading a very tight Y76.06-16 range. Rate eased throughout the session to Y76.07 before lifting on local demand to Y76.12. Premier Wen’s comments that China supports efforts to stabalise the EUR spiked USD lower to Y76.06, before bouncing to Y76.14. The cross headed higher on the open to Y100.42 before running into strong semi-official supply and real money sales that pressed the rate to Y99.98. Flat range trading was seen until earlier mentioned Chinese Wen comments spiked the pair to Y100.34, before an equally quick move back to Y100.10.
EasyForexNews Research Team