Aussie-yen sales in Asia were cited for placing downside pressure on dollar-yen, the move down to pressure reported option barrier interest at Y78.00 said to have provided a soft tone for yen pairs in general. The Y78.00 level did trade though there has been discussion whether or not the recently reported Y78.00-79.25 DNT option structure has been triggered. Strong demand thwarted efforts to take rate below the figure with short covering by specs able to edge the rate back to Y78.15. However, rate trades with an underlying heavy tone into early Europe, currently trading around Y78.05. Euro-yen closed in NY at Y101.50 and eased to overnight lows at Y100.87, while Aussie-yen traded down from Y81.85 to Y81.15/20. Euro-yen was trading back above Y101.00 into Europe, while Aussie-yen sits back at Y81.30. Dollar-yen bids remain in place at Y78.00, with a mix of stops and further demand interest seen down to Y77.80. Resistance Y78.25/30.
EasyForexNews Research Team