Dollar-yen recovery off Monday NY session lows of Y89.08 extended into Asia, after closing the NY session at Y89.54. Rate pushed on to Y89.63, as further demand came via the Tokyo fix. However, reported comments from the Japanese economy minister Amari warning that excessively weak yen has negative effects on livelihoods sppoked the markets and prompted a sell off, the rate dropping back to Y88.62. Euro-yen, which had extended its recovery off NY lows of Y118.89 to $1.119.98 in Asia, dropped back to Y118.58, but both pairs met willing buyers into the dip with stand out buying noted from CTA’s and macros as rates recovered to Y89.11 and Y119.18 but the recovery momentum quickly faded. The underlying tone remains for further yen weakness though Japanese officials have been noted voicing concern over the speed of the currency’s depreciation which could provide a corrective prompt should yen slippage pick up momentum.
EasyForexNews Research Team