Dollar-yen closed in NY at Y93.47 after rate had been driven to a corrective pullback low of Y92.95, from intraday highs of Y94.41, as market reacted to confused messages from G7. Rate came under further downside pressure into early Asia, Tuesday’s comments continued to prompt profit take covering as markets turn focus to this afternoon’s key US retail sales data, as well as G20 Friday-Saturday, the rate getting pressed to Y92.83 before picking up fresh demand into the dip. Rate opens Europe around its Tenkan line at Y93.04. Technically the upside remains favoured though signals, noticed Tuesday, have begun to weaken. Trade inmto the weekend meeting expected to be contained within Y92/94 but rate remains open to headline react risk. Euro-yen closed NY at Y125.81, off its corrective lows of Y124.75 having seen highs earlier in the day of Y126.95. Rate extended pullback lows to Y124.78 in Asia as traders continued to pare long positions ahead of the weekend G20 meeting, with comment that yen will be discussed. Looking at G7 it would seem they see benefit in Japan’s efforts to move out of deflation but don’t want official comment to support a
weakening in the yen.
EasyForexNews Research Team