Closed in NY Friday at $1.6174, just off session highs at $1.6177. The mark up in yen pairs, following the LDP/NKP win in the Japanese lower house election, saw cable marked up to $1.6188 into opening trade Monday before this early rally faded and eased off to $1.6156. Fresh demand emerged into the dip allowing rate to move up, making a brief show above $1.6200 at $1.6202. Moves were seen in tandem with euro-dollar, with both correcting lower on profit take euro-yen sales, which eased cable to $1.6158. Late demand in Asia sees rate edging back to $1.6186, the move seen linked to sales of euro-sterling as the cross extends its corrective pullback off stg0.8155 highs to stg0,.8127 into Europe. Cable demand remains in place into $1.6150, a break to open a deeper move toward $1.6110/00. Resistance $1.6195/05, more offers between $1.6215/20. Tech traders note that the $1.6197 level corresponds to the 76.4% retrace of $1.6310 to $1.5830. If rate can build above this level it exposes the $1.6310 (Sep21) 2012 high. Little on the UK calendar, moves to be dictated by euro-dollar action.
EasyForexNews Research Team