Dollar-yen consolidated Thursday’s gains through Asia within a tight Y78.86/96 range. The rate was able to make a brief show above Y79.00 (Y79.04) in NY as it was driven higher on the back of US yields, which in turn were boosted by release of an upbeat ADP, which has edged forecasts for today’s US NFP to 130k from pre 115k calls (US Monster Index released overnight also supports a stronger outcome). Technicals suggest that outlook has turned to positive for this rate, though upside progress still has some work to do. The Ichimoku cloud top at Y79.14 then 100-dma and 200-dma at Y79.24-31 respectively the next levels to clear. Support seen at the overnight low of Y78.86 with further interest seen to Y78.70 with stops below. Euro-yen was contained within Y99.60/77 through Asia, opening Europe around Y99.72. Offers remain in place between Y99.80-00, a break to open a move on toward Y100.20 then Y100.50. Support seen back at Y99.50. US Employment Report key release on the day, the effect on US yields to provide the main driver of direction.
EasyForexNews Research Team