Opened in early Europe at Y79.14 and Y103.81. Opened in Asia at Y78.93 and has again consolidated previous day’s gains as it pulls well clear of the 200 day MA at Y78.04 broken on Tuesday. The pair built higher this morning on the back of some Toshin related flows, taking out a Y79.00 barrier just after the Tokyo fixing, and tripping some stops to a high of Y79.18. Large corporate supply ahead of Y79.20 has since led a slip back to Y79.05. The move dragged EUR/JPY up from early lows of Y103.43 to Y104.03, Profit taking then led a slip back to Y103.75 and Y85.11 respectively. Into Europe and USD/JPY held steady, consolidating gains with trade confined in a tight range. Exporters pressed the rate to Y79.05, slipping further through Y79.00 to Y78.97 on offshore order flow. Demand seen into the dip lifted USD to close the morning mid-range around Y79.06. The cross headed higher on
early European demand to Y104.05, before easing on profit take sales to Y103.64. Semi-official demand and aided by a buoyant EUR/USD the pair recovered to Y104.07, later easing to Y103.90.
EasyForexNews Research Team