Yen remained defensive as dollar took out the Y81.75 barrier barrier to print fresh 7 month highs of Y81.76, before late profit take sales eased to Y81.68 around the NY close. Euro-yen tracked the dollar to highs of Y104.77, before paring light gains after Bernanke’s speech to Y104.50. The cross later ground higher on euro-dollar’s extended recovery to close in NY at Y104.70. Dollar-yen opened on a bid tone in Asia and lifted to Y81.97 as the rate consolidated gains after the Tokyo fix. Strong supply ahead of the Y82.00 barrier eased and the dollar extended losses to Y81.71 following the disappointing eurogroup headlines on Greece. Late trade recovered to Y81.80. Euro-yen initially made a show above Y105.00 and flushed stops to highs of Y105.07 on early reports that a deal had been agreed. Headlines from Schaeble that denied eurozone finance chiefs had reached an agreement added weight and the cross slipped sharply to Y104.10, later recovering to Y104.45 ahead of Europe.
EasyForexNews Research Team