Following the G20 Communique release, without a direct criticism of Japan recent activity to weaken its currency, the Japanese currency came under fresh pressure into Asia Monday. Dollar-yen, which had been pressured back up to Y93.84 on reaction to leaked the G20 draft, closed the week at Y93.50, with Asia able to step this rate up to an overnight high of Y94.22, settling back between Y93.85/94.00 ahead of Europe. A similar move for euro-yen, though with euro-dollar under pressure, the recovery was less impressive. However, the rate closed NY at Y124.96, off session highs of Y125.28, with the extended move up in Asia touching Y125.69 before it settled back between Y125.20/50 into Europe. Attention now turns toward the appointment of the next BOJ Governor, the three main contenders, Kuroda, Muto and Iwata having perceived views. An announcement is expected ahead of Japan Abe’s meeting with US Obama (Feb20-24). Technical traders still have recent highs around Y94.40 in view, with Y95.70 also mentioned, though they do admit that upside momentum has slowed.
EasyForexNews Research Team