Dollar-yen failed to break Y79.00 in Europe yesterday, the rate met strong resistance at Y78.96 and ground lower to Y78.88 around the NY close. The pair opened flat in Asia before slipping in tandem with euro-yen on reported Japanese bank sales ahead of the Tokyo fix, further cross sales pressed and dollar printed lows of Y78.61. Late dip demand nudged off lows ahead of Europe. Strong demand seen into Y78.50, ahead of tech support at Y78.46/44 (Tenkan line, 55 dma). Euro-yen closed in NY Tuesday at Y103.00, the rate recovered from a pullback low of Y102.62 after earlier printing highs of Y103.08. The cross spiked to Y103.52 in early Asia and was boosted by news that Moody’s was maintaining Spanish ratings, although assigning a negative outlook. Profit take sales eased, before LHS interest emerged ahead of the Tokyo fix, Japanese retail accounts added weight and the pair slipped to Y103.10. Tight range trade continued and the pair consolidated above Y103.00 ahead of Europe. Support seen on the downside at Y102.60, stronger behind at Y102.50.
EasyForexNews Research Team