Dollar-yen extended recent highs to Y99.88 in late NY trade but moves toward the Y100.00 were again thwarted by stiff resistance. Rate dipped back to test the broken resistance at Y99.74 in early Tokyo (50% Y124.14-75.35), managing to find demand that lifted it back to Y99.86. However, this move was met by exporter outright and macro sales which pressed the rate back to eventual lows of Y99.36, aided by reports of Asian institutional sales from the Y99.70 level. The dip again attracted buyers which has lifted the rate back to Y99.65/70 into Europe. Traders highlight the large option expiries for today’s NY cut, the strikes running from Y99.50 through to Y98.00 and has been suggested that this interest may anchor dollar-yen below Y100.00 until they mature. Asian traders note decent offers sitting between Y99.90/100.00, one even suggesting that rate won’t get above Y99.95 on the day, with stops noted at Y100.10. Support seen back at Y99.20/00, covering the 5-dma at Y99.06 which is seen by Ichimoku traders as interesting support for rally continuation. Euro-yen was pressed back to Y129.71 after continuing its corrective pullback off Y130.54 which began late NY.
EasyForexNews Research Team