Dollar-yen continued Monday’s corrective pullback through Asia, the rate opening the overnight session at Y93.25 before touching an early low of Y93.06. The initial dip was repulsed back to Y93.31 before fresh selling emerged as the Nikkei opened in negative territory. Stops through Y93.00 were targeted and triggered but rate met support at Y92.96 on this initial move. Another round of selling emerged that triggered stops through Y92.90, then Y92.70 and Y92.60 before rate found a base at Y92.57. Rate recovered to Y92.86 but underlying tone remains heavy. Next support seen into Y92.50 with more stops below, with traders suggesting that the Y92.12/10 area of more interest being the 23.6% retrace of the Sep lows-Mar highs as well as the top of the ascending Ichimoku cloud. Dollar sales were seen as a continuation of the reacvt to the Monday release of weaker than expected US ISM data, with comments from Japan PM Abe that it may be the case that a 2.0% inflation target can’t be achieved within two years and N.Korean leader’s comment espousing the virtues of nuclear weaponry (as well as restarting operations at a closed nuclear plant). Euro-yen eventually broke below Y119.50 to extend its lows to Y119.20.
EasyForexNews Research Team