The pair closed in NY Tuesday at Y97.44 after rate had been pressed to extended lows of Y96.99 (the move reported to have triggered a barrier at Y97.00) before bouncing back to Y97.62 around the London month end fix, then drifted lower into the close. The softer tone in dollar-yen continued into Asia, the markets here thinned by the May holiday though Tokyo was in. Rate was pressed back to Y97.05 before fresh demand cushioned and allowed it to recover back to Y97.40. Rate then settled between Y97.23/37 through the Asian afternoon and into Europe. Demand remains into the Y97.00 area with one trader highlighting the Y96.87 level for one to watch on a close basis, seeing it signalling a deeper pullback toward Y95.50. Others highlight the March high at Y96.71 with Asian traders noting decent demand in place below Y96.80. Behind this support seen down at Y96.45/30. Resistance Y97.50-80, exporter offers seen at Y98.10-50.
EasyForexNews Research Team