The pair closed in NY Tuesday at Y99.98 after rate had extended its recovery off recent lows of Y98.86 (Jun3) to Y100.42 (Europe Jun4), pivoting the Y100.00 area into the close. Rate recovered to an early Asian high of Y100.37, as the Nikkei (the main directional indicator in recent sessions) opened in positive territory, only to pullback to Y100.00 as the Nikkei eased into the red. Anticipated comments from PM Abe provided a recovery in equities, which in turn spiked dollar-yen to Y100.47, but as market Abe didn’t provide any fresh action so equities and dollar-yen reversed. Dollar-yen dropped to an initial low of Y99.55 before slowly grinding lower into the European open. Rate moves through reported support at Y99.50/40 to Y99.39 and seen holding heavy. Next support seen at Y99.25/20 ahead of that recent low at Y98.86. Tech traders begin to see the hold below the Y100.20/50 as opening potential for a deeper pullback toward Y97.50-30.
