Dollar-yen closed in NY at Y92.77 after rate had been driven to extended highs of Y92.97. Barrier interest at Y93.00 became the early interest into Asia with demand taking the rate to a recovery high of Y92.91 before it ran into strong sell interest. Traders reported ‘black-box’ supply (some linking this interest to sales of 10-yr UST’s) from above Y92.70 which provided added weight as the rate squeezed down to Y92.50. However, buyers were quick to take advantage of the dip, the demand edging the rate back to Y92.80 before recovery stalled. Rate remained buoyed above Y92.60 through to the European open. Euro-yen saw similar moves, the rate having pulled up just shy of Y127.00 Friday (Y126.97) before closing the session back at Y126.66, having recovered off a pullback low of Y126.31. Rate recovered to Y126.86 in early Asia before it tracked dollar-yen’s pullback to Y126.06. Recovery efforts were capped at Y126.50, though rate remained buoyed above Y126.10 through to the European open. Offers in dollar-yen remain in place into Y93.00 barrier interest, with exporter offers noted from Y93.15. Offers ahead of Y127.00 barriers provide the next main upside hurdle.
EasyForexNews Research Team