The pair closed in NY Tuesday at Y102.33, after rate had seen extended recovery highs of Y102.50 post US consumer confidence data, drifting off to Y101.86 before edging higher into the close as move tracked UST 10-yr yields. Rate dipped to Y102.20 in early Asian dealing before recovering to Y102.53. However, decent supply at the Tokyo fix reversed this recovery and took rate down to Y102.02. This corrective pullback was given added weight by Nikkei paring recent gains (the move into negative added further weight) as well as decent sales of Aussie-yen, as the Australian dollar came under general pressure through the overnight session. Rate recovered through the Asian afternoon, pushing up to Y102.48 but traders are aware of decent private money sell interest placed from above Y102.50 and said to extend to Y102.90. One trader has noted that the expiry at Y102.00 for the NY cut is for decent size. Euro-yen tracked dollar-yen overnight, pushing up to a high of Y131.71, from an opening level of Y131.59. Rate then dropped back to Y131.14 before recovering to Y131.63 ahead of Europe.
