Opened Asia just off NY lows at Y77.81, with early talk suggesting the Y77.80 level was holding semi official demand. However, general dollar sales eventually provided the weight to break under Y77.80, the move extending recent lows to Y77.74. Rate retained a heavy tone through Asia, though market seen wary of possible official activity. Japanese traders have suggested the authority could be prompted into buying ahead of this week’s half year end, though others have suggested that while any move lower seen orderly they will stand aside. Euro-yen took direction from the easing in dollar-yen, with the overnight recovery in euro-dollar reversed into early Europe which has taken the cross to extended lows of Y100.32, having seen highs in Asia of Y100.83. Yen remains the main gauge for risk, any aversion will see funds flow into the Japanese currency, while any boost to take yen pairs higher.
EasyForexNews Research Team