The eventual break above Y83.00 Wednesday, as the pressure pot burst under the weight of buying, saw rate hit initial highs at Y83.20, with reaction to the FOMC announcement fairly muted thereafter as rate extend move to Y83.30. Rate was holding firm into the close , early Asia provided some counter and eased it to Y83.13 before stronger demand emerged into Tokyo which took rate on to an early high at Y83.44, meeting option linked offers ahead of a barrier at Y83.50. However, upside pressure quickly took this level out, extending move to Y83.64 before clawing its way on to Y83.67 ahead of the European open. Offers now seen in place ahead of Y83.75, more toward barrier interest at Y84.00. Euro-yen closed in NY at Y108.77 after making a brief show above Y109.00 post FOMC. Soft yen and strong euro acted to boost this rate’s recovery through Asia to Y109.46, meeting resistance from offers placed toward Y109.50. Further offers noted at Y109.80/85. Fall out from last night’s FOMC will continue to influence. Leveraged names have been noted buyers of dollar-yen in Asia, with Japanese profit takers countering.
EasyForexNews Research Team