Closed in NY at $1.3047 as rate recovered off session lows of $1.3029. A paring back of risk positions Tuesday saw rate extend its corrective pullback off Monday highs at $1.31729 to $1.3029. A quiet open to Asia saw rate consolidate between $1.3040/50 in opening trade before Japanese sales of euro-yen into the Tokyo fix pressured it down to session lows of $1.3034. Slow initial recovery to $1.3045 was then accelerated as the BOJ announced further easing. Euro-yen spiked up to Y103.53, from session lows of Y102.48, the move taking euro-dollar to highs of $1.3072 with rate holding firm into early Europe. Offers remain in place above $1.3070, with further interest noted between $1.3080/85. A break here to open a move toward $1.3100 ahead of $1.3115/25. Stops reported above this area. Bids noted at $1.3035/30 with stronger interest remaining between $1.3020/00. A fairly light data calendar today with direction to again be headline driven as traders assess the risk effect of comments. Yen of interest after the BOJ move.
EasyForexNews Research Team