The pair closed in NY Monday at Y99.28 after rate had been pressed back to Y98.98 following earlier failed attempt to take out the Y100.00 area. Rate touched a recovery high at Y99.39 in early Asian trade before turning lower, the initial pullback seen as a reaction to a weak Nikkei with the move lower then given an added shove on release of softer than forecast China PMI data, traders highlighting the move below 50.0 in the new export orders data for providing the main knock to risk which benefited the yen. Large stops were triggered on the move through Y98.80 and provided the weight to take the rate to extended lows of Y98.59. Buyers emerged into the dip though recovery efforts were described as shallow, the rate holding below Y99.00 (recovery high Y98.86) before it settled around Y98.70 into Europe. Asian traders have reported offers in place at Y99.30/40, with next crucial support seen at Y98.10/00. Euro-yen tracked dollar-yen moves, the rate extending its corrective pullback to Y128.54 from an early high of Y129.83. Modest indications by Japanese life companies to increase offshore investments seen as a key driver as dollar-yen backed away from the Y100.00 area.
EasyForexNews Research Team