A late Asia comment from Japan Amari regretting that recent comments warning on the effects of a weakening yen had been misinterpreted prompted a spike up from Y88.35 to Y88.70, the move up greeted by Japanese lifer supply which eased it back to Y88.53. Euro-yen, which had been a main driver of Asian trade through the earlier part of the session was hiked up from Y117.34 to just shy of Y118.00. Earlier in the Asian session the rate had pushed up from an opening level of Y117.48 to Y118.20 before it dropped down to Y117.01 with macro sales providing the initial shove lower. Dollar-yen had seen early highs of Y88.80 before it dropped back to Y88.14, in line with the cross, the rate opening into Europe around Y88.60. Traders note this recovery in yen pairs but most still see room for a deeper corrective pullback, possibly back between Y87.00-86.50, before we see another decent push higher.
EasyForexNews Research Team