A whippy session for euro-yen through the Fed Bernanke testimony Tuesday, the rate dropping from around Y121.05 initial react highs to Y118.98 before recovering into the close to Y120.18. This recovery extended to Y120.53 ahead of the Tokyo fix, as Japanese importers and investors provided the main demand. Post fix and rate reversed tack, dropping back to Y119.52, recovered to Y120.35 before settling between Y119.85/120.05 into Europe. Dollar-yen saw similar swing moves Tuesday, spiked to Y92.40 before dropping back to Y91.13, recovering to Y92.10 ahead of the close. This recovery extended to Y92.27 into the Tokyo fix before dropping back to Y91.63. Rate made an Asian afternoon recovery to Y92.10 before settling back between Y91.70/80 into Europe. Fed Bernanke second part of his testimony at 1500GMT, no change in text but Q&A could throw up some different interpretations. Traders report dollar-yen demand from Y91.60, trailing to stronger interest into Y91.00 and into Monday’s low of Y90.88. Japanese sources mentioned Tuesday that the candidate for BOJ Governor will be announced Thursday, which could provide for another round of yen softening and could place large barrier interest at Y95.00 back into the line of fire.
EasyForexNews Research Team