Dollar-yen printed highs of Y78.76 on better than expected Retail Sales data, others say demand attributed to the Softbank – Sprint Nextel deal. The pair was unable to consolidate gains and closed in NY at Y78.68. Dollar-yen opened in Asia at Y78.70 and ground higher through the Tokyo fix amid light flow, the rate extended gains through key tech resistance from the 100 dma/Ichimoku cloud top to print Y78.91. The underlying tone remains buoyant with strong offers seen into Y79.00 and stops set, traders also note a reported large strike rolling off here on Wednesday. Through here opens a move towards Y79.22/39 (19 Sep high, 200 dma), ahead of more large offers/stops at Y79.50. Euro-yen closed in NY at Y101.90, off the earlier spike high of Y102.29 following release of positive US Retail Sales. Euro-yen opened on a bid tone in early Asian trade to print Y102.25, before the rate stalled and settled in a tight range. Fresh demand late Asia/early Europe extended to Y102.39 with strong offers reported into Y102.50, a break opens key tech resistance at Y102.53 (4 year downtrend).
EasyForexNews Research Team