Dollar-yen made a clean break of Y79.00 and extended to NY highs of Y79.05 on reports that the BOJ and government may each provide further stimulus, the rate later eased to close at Y78.95. Dollar demand in early Asia lifted the pair back through Y79.00 and extended to Y79.20, strong resistance from exporters capped moves and the rate eased to Y79.10. Tight range trade continued with the pair consolidating early gains as traders look to a break of key tech resistance from the 200 dma at Y79.41 for the next leg higher. Through here and strong offers seen into Y79.50 with stops set, ahead of Y79.66 (August high). Euro-yen surged to highs of Y103.74 on the dollar move, before paring some gains to close in NY at Y103.60. The cross ground lower in early Asia before lifting in tandem with dollar-yen through the Tokyo fix. Rate extended gains to Y103.85, where the rate met resistance from the 17 Sep high and eased to Y103.55, profit take sales also added weight. Dip demand recovered to Y103.70 where the underlying tone remains buoyant ahead of Europe.
EasyForexNews Research Team