Continued its uptrend and lifted to fresh seven month highs of Y81.46, before meeting strong offers ahead of the Y81.50 barrier. Dollar turned defensive on weak data and stocks and retreated to Y81.05,
the rate later bounced to close in NY at Y81.15. Euro-yen remained buoyed by strength in the crosses and lifted to Y103.99, it too met strong resistance ahead of the Y104.00 barrier and eased to Y103.70. Early demand lifted dollar-yen to Y81.26 in light Asian trade, before the rate pared gains on cross sales post the Tokyo fix. Japanese names added further weight and made a show under Y81.00, before recovering on Trust bank demand. Late trade was heavy and dollar-yen sat around session lows of Y80.90 ahead of the European open. Euro-yen lifted to Y103.90 in early Asia before sharp supply from a US bank pressed after the Tokyo fix, the cross extended losses in late dealings to Y103.23. Traders wait for Japanese PM Noda to announce the dissolution of parliament, which would pave the way for elections next month.
EasyForexNews Research Team