Dollar-yen touched a recovery high of Y94.11 in NY Wednesday as the dollar was driven higher on react to a stronger than forecast US ADP data (upside revisions also noted for Jan), and seen supporting positive calls for Friday’s NFP. Rate drifted back toward Y94.00 into the session close with early Asia extending this move to Y93.82 on reaction to the unchanged BOJ though it did include an upbeat view on the economy. Rate recovered to retest the NY high at Y94.12, eased to Y93.80 before settling around Y93.90 ahead of the European open. Similar story for euro-yen, the rate touching a high in NY of Y122.28 before reversing into the close to Y122.00, with early Asia extending this move to Y121.77, on early euro weakness, before rate recovered to Y122.16. An afternoon drop back to Y121.86 then saw rate recover back Y122.00 ahead of Europe. Asian traders have noted demand in place at Y93.75, with main sell interest seen into Y94.50. A break of this latter level to expose recent highs at Y94.77.
EasyForexNews Research Team