Dollar-yen closed in NY Friday at Y89.18 after rate had eased off post US trade data highs of Y89.45. Japan holiday led to a slow start in Asia with early trade contained by Y89.25/35. Thin conditions allowed market to turn their attention on the option barrier at Y89.50, with demand emerging to take this level out, with triggered stops above, and through Y89.60, providing the added momentum to take rate on to Y89.67. This move, along with the buoyant tone in euro-dollar, allowed euro-yen to extend its recent recovery, taking out barrier interest at Y120.00 before rally faded above Y120.10 (high Y120.13). Yan was holding just off its worst levels ahead of the European open. Dollar-yen offers seen into Y89.70 with stronger interest noted between Y89.90/95 linked to protection of the next barrier interest at Y90.00. Demand seen back at Y89.50/40, then Y89.20. Japan PM Abe comments that he desires ‘a person who can carry out bold monetary steps’ as the next governor of the BOJ was seen adding further negative weight against the yen.
EasyForexNews Research Team