Monday’s large Y98.50 option expiry provided an anchor into early NY trade, but once the cut had passed it allowed for another round of yen sales which allowed rate to break Y99.00, extending the move into the NY close to Y99.38. Asia took over the baton and drove the rate on to Y99.66, though traders in that centre said US names were the stand out buyers. Offers placed ahead of barrier interest at Y99.75 (also 50% Y124.14-75.35) said to have aided resistance, with further barrier interest then noted into Y100.00. However, one major US bank has suggested that resistance ahead of Y100.00 may not be as strong as some may think, noting that Ichimoku traders have set their sights on the Y100.70 level. Macro and CTA selling emerged to take rate off highs, trading back to Y99.09 before meeting fresh demand, though this interest was only able to lift it back to Y99.50. Rate settled between Y99.15/35 ahead of Europe. Euro-yen tracked the moves, extending its own recent recovery to a high of Y129.94 before faltering ahead of Y130.00, with sell interest seen from option players, along with exporter supply. Rate eased to Y129.28 ahead of the European open with this corrective pullback looking set to extend in early trade.
EasyForexNews Research Team