Dollar-yen closed NY at Y93.55, after drifting off from a FOMC Minutes inspired spike high of Y94.05. Minutes were viewed as ‘hawkish’ which in turn provided a strong boost the dollar. However, the euro saw the brunt of this dollar demand, with euro-yen dragged off its highs of Y125.55 to Y124.18 before closing in NY at Y124.28. Dollar-yen picked up fresh demand in Asia, the rate pushing up to Y93.87, with euro-yen tracking this early move as it edged to Y124.71. Fresh pressure on euro-dollar reversed this early recovery in the cross, taking it down to Y123.64, the move dragging dollar-yen down to Y93.35 (Tenkan line). Support remains at Y93.35, with stops placed through Y93.15/10. Stronger demand noted at Y92.85/80.
EasyForexNews Research Team