Dollar-yen closed in NY Monday at Y95.17 after pulling back from a recovery high of Y95.60. Rate picked up fresh demand into Asia that took it through Y95.65, the move triggering stops and provided the added momentum to lift the rate on to highs of Y95.75. Euro-yen saw a similar move, closing in NY at Y123.29 after rate had pulled back from Y123.96 to Y122.88 before it recovered into the close. This recovery continued into Asia, the rate edging on to Y124.13 before this move suffered a late session reversal to Y123.41 as the euro came under general pressure on suggestions that the Cyprus parliament vote later today will reject the current levy proposals. This move lower in the cross dragged dollar-yen down to Y95.39 into early Europe. BOJ Shirakawa steps down today and is currently due to make a farewell speech. Market will now turn attention to the new leadership of the BOJ to see if they voice their intentions for future action when they take over the reins Wednesday. Further yen weakness still expected though technical signals are seen weakening.
EasyForexNews Research Team