The pair closed in NY at Y99.68 after a late rally faltered ahead of the Y100.00 at Y99.95. Note traders Thursday suggested that this rate would be capped by that Y99.95 level, the same has been reported this morning, though only covering the Asian session. Dollar-yen edged to Y99.81 in opening Asian trade before Tokyo emerged as sellers into their opening, the supply pressing the rate down to eventually break under Y99.50, the move triggering stops of weaker spec longs positioned for a break of Y100.00 into Asia. Rate saw an initial low of Y99.44, bouncing to Y99.63 on profit take buys, before another round of selling squeezed it down to Y99.36. Rate settled backa round Y99.50 ahead of the Europe open. BOJ Kuroda press conference provided some nervous anticipation but he seems to covered what was said in a recent WSJ injterview with little reaction noted. Traders report that main demand interest seen back in place from Y99.20 through to Y98.90, with strong option defence offers in place between Y99.90/100.00, with stops seen through Y100.05/20. Euro-yen saw extended highs of Y131.12 Thursday before drifting lower, the corrective pullback gaining momentum in Asia to take it to Y130.31.
EasyForexNews Research Team