Opened in early Europe at Y78.48 and Y103.35. Opened in Asia at Y78.43 having finally broken higher in yesterday’s session through the 200 day MA at Y78.04. The USD topped out at Y78.54 in NY and saw steady buying throughout Tuesday from macro funds. The pair headed higher again in Asia this morning after early lows of Y78.35, with strong buying from Japanese importers. The move prompted a strong rally in the crosses and this led the dollar-yen higher again triggering some stops through Y78.55 to Y78.67, before settling back around Y78.45. EUR/JPY jumped from Y102.87 through stops at Y103.30 to Y103.48. Into Europe and USD/JPY traded a very tight Y78.43-55 range, with very little action. Key technical levels seen on the topside from the 15 Aug 2008 resistance line at Y78.69, with stops set on a break. EUR/JPY tracked EUR/USD moves and lifted on the open to intraday highs Y103.49 before easing to Y103.20 on macro/model account supply. Strong demand met and the pair headed higher to settle around Y103.40 and trade a tight range, later easing to Y103.30 in light volumes.
EasyForexNews Research Team