Dollar-yen closed in NY Thursday at Y93.70 after recovering off pullback lows of Y93.08. This recovery slightly extended to Y93.74 in early Asia before momentum faltered, the rate then drifting off through the balance of the session to Y93.20 as traders reported a paring of spec longs ahead of the weekend. This move lower was also aided as euro-yen retained an underlying soft tone, recovery off NY lows of Y124.50 capped by Y125.57 in Asia before rate slipped back to Y124.88 into Europe. Second doji signal in two days does warn traders of a possible trend change, but while rate holds above the Kijun and Tenkan lines at Y92.20 and Y90.44 it keeps the recent underlying upside trend in place and may just signal a partial corrective phase, especially into next week’s China new year celebrations. Ichimoku traders still have Y95.70 as next upside target. Same technical traders seen euro-yen holding a range of Y124/128 in the near term, though still mention upside target at Y128.70.
EasyForexNews Research Team