Dollar-yen closed in NY at Y92.93 after recovering off a late session low of Y92.67. This recovery extended in Asia, the rate pushing to session highs of Y93.12 with comments from LDP member Yamamoto that a dollar-yen of between Y95-100 would be appropriate, along with Gotobi day demand into the Tokyo fix, aided the early move. Rate reversed off highs as source comments suggested Muto to be the leading candidate as next BOJ Governor (vs more dovish Iwata), taking rate down to Y92.60. Leaked G20 draft suggesting Japan would not be named in the Comminique provided for the bounce to Y93.03. The recovery rallies provided better exit levels for those looking to pare longs into the weekend, with G20 comment still having potential to weigh back on yen pairs. Technically dollar-yen upside still seen favoured, though momentum has been slowing over recent sessions. Euro-yen tracked dollar-yen moves, the rate extending its recovery to overnight highs of Y124.39 before it stepped its way down to Y123.20, with the recovery through the Asian afternoon given a boost into Europe as the euro gained ground on reported ECB Weidmann comments that the ECB would not act to weaken the euro via interest rates.
EasyForexNews Research Team