Leverage selling of dollar-yen into early Asia applied pressure on this pair, as well as euro-yen, with the move lower dictating play through the Asian session. Dollar-yen reversed off an early high of Y82.21 to Y81.79, with a US name a noted seller from around Y81.85, meeting European demand around the Y81.80 level. Euro-yen dropped from Y106.37 to an initial lowe of Y105.73, a recovery to Y106.00 quickly reversing to take rate to extended lows into Europe of Y105.61. Dollar-yen extended its lows to bring pressure to bear on reported stops sub Y81.70, the rate resting on this level at posting. A break here to open a move down to challenge stronger demand into the Y81.60 level, with reports of more stops below here, and sub Y81.50. Medium term players though are expected to begin picking up dollar-yen into this current dip.
EasyForexNews Research Team