The pair closed in NY at Y97.12 after rate had seen an impressive sell off through Thursday’s London fix with triggered stops through Y97.80-50 providing the initial momentum that saw rate drop to lows of Y95.90. Recovery into the close was aided by reported Japanese Life company demand into the dip. Rate extended the recovery into Asia, pushing up to Y97.52 into the Tokyo fix before easing back off after. FinMin Aso comment that there is no immediate need to intervene in dollar-yen provided the trigger for another wave of sales which took the rate to extended lows of Y95.55. Recovery off this low accelerated from Y95.75 as traders rushed to cover back ahead of an expected announcement from GPIF of its mid term investment plan (1400JST), the rate triggering short term stops on the move through Y96.75 as it pushes on to Y96.90 into Europe. Euro-yen trade in Asia tracked dollar-yen, the rate opening at Y128.64, off NY lows of Y127.53, before edging up to Y129.08. Rate dropped back to Y126.77 on the Aso comment, recovering to Y128.60 ahead of the GPIF announcement.
