Risk appetite continued in the US afternoon on Thursday as dollar-yen took out the Y90.00 barrier. The pair flushed large stops on the move to print highs of Y90.14, before profit take sales eased to Y89.90 around the NY close. Euro-yen spiked to fresh 21 month highs of Y120.60, before easing with the dollar to Y120.30. Dollar-yen made a show back above Y90.00 in early Asian trade, before heading lower through the Tokyo fix on sharp cross supply. Comments hit the wires from Hamada who is a key economic advisor saying that the dollar at Y100 is good for Japan’s economy, this spiked the pair to fresh 2-1/2 year highs of Y91.20. Euro-yen dipped to Y119.80, before lifting to Y120.71 on the headlines. Late profit take sales from intraday accounts eased the dollar to Y90.03 and cross to Y120.48 as the yen pairs remained in consolidation mode ahead of Europe. Dollar-yen resistance seen at Y90.20/30 from Japanese names, strong offers behind protecting the Y90.50 barrier. Euro-yen resistance at Y120.82 (May 4 2011 high), through here and offers ahead of the Y121.00 barrier.
EasyForexNews Research Team