Dollar-yen lifted to fresh 29 month highs of Y86.79 in late NY trade Monday after positive headlines on fiscal cliff negotiations. The rate remained in consolidation mode and pared light gains to close around Y86.73. Euro-yen mirrored the dollar move and after a tight European session surged in the US afternoon to close at Y114.47. Dollar-yen opened heavy in Asia and slipped to Y86.54, demand into Y86.50 cushioned moves and the rate recovered to Y86.65. The pair extended gains through the Tokyo fix, before taking out the Y87.00 barrier on news that the US Senate and House of Representatives had agreed on a fiscal cliff deal. Stops were flushed on the move and general risk appetite increased as the pair ground to fresh highs of Y87.33 and remains buoyant ahead of the European open. Euro-yen slipped to Y114.18 in early Asia, before bouncing off lows through the fix to Y114.90. The cross spiked to Y115.99 on fiscal cliff approval but failed to take out the Y116.00 barrier, later easing to Y115.75.
EasyForexNews Research Team