Opened with a small gap higher in Asia around Y79.60 as risk appetite returned with positive Greek bailout news expected and Saturday’s RRR cut from the PBOC. Importer demand triggered stops and along with strong euro-yen macro demand, took the pair to highs of Y79.89 before encountering exporter offers. A bout of profit taking then led a drift back to Y79.43. EUR/JPY opened at Y105.07 from a NY close of Y104.53 and after a brief low of Y104.82 was hauled higher by macro buying to Y105.75 before falling back to Y104.93. Into Europe and USD/JPY slipped on the open to Y79.36 before buying into the dip lifted to Y79.55. A further bout of profit taking eased the pair, before USD sentiment turned and the rate headed higher to print Y79.64 and trade flat. EUR/JPY extended Asian losses on corporate sales to Y104.65 before lifting to Y104.80 on strong EUR/USD demand. As traders became more positive of the Greece outcome later today euro rallied lifting the pair through Y105.00 to Y105.32 and consolidated gains.
EasyForexNews Research Team