Dollar-yen closed in NY around Y95.10 after recovering off a NY session low of Y94.72. The move down was seen as rate was dragged lower by heavy euro-yen sales linked to market reaction to the Cyprus government rejection of the Troika bank deposit levy, the cross seeing lows of Y121.84 before it closed back at Y122.40. Dollar-yen edged on to Y95.20 in Asia before it was knocked back to Y94.83 but traders noted that an Asian real money player has been an interested buyer into dips in this area for the past few sessions, possibly related to the reported large European Y95.20 digital that is due to roll off at today’s NY cut. Traders also note that a large plain vanilla with this strike also rolls off at the same time. With this in mind most expect rate to be anchored top this level ahead of maturity. Rate recovered through the balance of the Asian session, opening Europe back at Y95.18. Euro-yen eased to Y122.04 in early Asian trade before it recovered to Y122.65 into Europe. Japanese holiday today with market awaiting any announcement today or tomorrow from the new governorship for direction.
EasyForexNews Research Team