Dollar-yen’s corrective pullback from early Monday highs at Y93.18 extended to a NY low of Y92.21 before closing the session just off that level at Y92.27. Stops below Y92.20 became the early target in Asia, the triggered sales taking the rate to an extended low of Y91.98 before strong Japanese demand emerged into the dip. Rate recovered to Y92.56 before getting knocked back to Y92.21 post Tokyo fix, but again the dip quickly attracted demand and allowed rate to edge back, settling between Y92.35/45 ahead of the European open. Technical traders continue to call for higher levels, highlighting levels into Y94.00 as a near term target, though Japanese exporter sell interest seen as the first upside hurdle, offers from this area now seen lowered into Y93.00. Euro-yen continued to trade with an underlying soft tone, the rate extending its corrective pullback from Friday highs at Y126.97 to Y125.70 into Monday’s NY close, with early Asia taking on to Y124.18. This extended dip quickly attracted buyers, the recovery able to touch Y125.01. Failure to build above Y125.00 saw rate drift lower again before settling between Y124.50-65 in Europe.
EasyForexNews Research Team