Dollar-yen closed in NY at Y88.74, after rate had seen lows earlier in the day at Y88.37 following the corrective pullback in yen pairs seen after the initial positive reaction to Tuesday’s BOJ monetary policy announcement (timing of stimulus viewed as ambiguous). Rate touched an early high of Y88.79 before turning lower on Japanese sales, the rate moved down to retest Tuesday’s mentioned low before demand emerged at the Tokyo fix. Rate retested the early high before slipping lower through the Asian afternoon, moving through Y88.37 to stg0.8812 and seen holding heavy into the Asia/Europe transition. Triggered stops below Y88.30, with main sell weight seen from macro accounts, cited for this late move, with next support seen into Y88.00 and larger stops below. Bids reported toward Y88.80, with CTA stops noted on a break of Y88.90. Euro-yen tracked dollar-yen moves overnight, initially dipping to Y117.72 from an early high of Y118.32, the rate then recovering to Y118.34 before sliding lower through the Asian afternoon to Y117.32 ahead of the European open. Rate currently trades around Y117.38. Japan Economic and fiscal policy minister Amari is due in Davos, comments from him will be in focus.
EasyForexNews Research Team