Dollar-yen closed in NY at Y79.78 with trade tied to a narrow 10 pip range. The rate slipped to Y79.73 on the Fed’s announcement to leave rates and policies unchanged, dip demand later recovered. Euro-yen slipped to Y103.28 after the Fed, before the rate met support and tracked euro-dollar’s extended recovery to Y103.57, later easing to close around Y103.50. Dollar-yen opened on a bid tone in thin Asian trade, cross demand extended through the Tokyo fix to print highs of Y79.95. The rate consolidated gains before dollar made a show above Y80.00 on headlines from the BOJ that they are considering a Y10 Tln increase in its asset-purchase program, extending to fresh 4 month highs of Y80.12. Strong offers seen on the topside at Y80.20 and Y80.35/40 with CTA stops on a break of Y80.40. Strong demand through the Tokyo fix lifted euro-yen to Y103.85, before the rate eased on profit take sales. Support met in the dip and aided by dollar-yen’s move through Y80.00, the cross extended to highs of Y104.14. Offers reported at Y104.20, stronger behind at Y104.50.
EasyForexNews Research Team