Market sentiment turned in the American afternoon yesterday and as traders preferred the safe-haven plays, dollar-yen consolidated gains and closed around Y79.25. The rate earlier printed a spike high of Y79.46 following comments that the BOJ is expected to consider fresh easing measures. Dollar-yen opened flat in Asia before lifting on sharp demand ahead of the Tokyo fix to Y79.41, the rate met strong resistance from the 200 dma (Y79.43)/offers ahead of the Y79.50 barrier and eased to Y79.35. Flat trade was seen across the board in all majors as traders squared positions ahead of the weekend. Euro-yen closed in NY at Y103.60, the rate recoverd from a pullback low of Y103.30, after earlier printing spike highs of Y104.14 following release of positive Phila Fed data. Euro-yen slipped on the Asian open to Y103.60, before lifting in tandem with dollar-yen through the fix to Y103.80. The cross stalled and settled in a tight 20 pip range ahead of Europe. Resistance seen at Y103.85 (Rising channel upper), ahead of offers at Y104.00.
EasyForexNews Research Team