The pair closed in NY at Y96.07 after recovering off a session low of Y95.14, having failed to retest recent lows at Y94.97. Early Asian traders forecast a negative open in the Nikkei, following a negative close on Wall St and applied downside pressure again on dollar-yen taking it to an early pullback low of Y95.72. Rate recovered to Y95.96 into the Tokyo open with fresh selling emerging as the Nikkei did indeed open down. Stops triggered on the clear below Y95.00 took rate through barrier interest at Y94.85 with downside momentum able to take rate to an initial low of Y94.45. A recovery failed to take rate back above Y95.00 with fresh sales taking rate to extended lows of Y94.18 ahead of the European open. Bounce attracted Asian real money demand which has lifted it back to that Y94.45 initial low. Nikkei performance remains the key driver for direction. Focus seen turning to Japan PM Abe comments Friday though market already positioning on suggestions he won’t propose anything new, recent comments from FinMin Kuroda proving disappointing. Verbal and quasi government interventions could be expected. Traders aware of a large Y95.00 digital expiry, payout $10mln if below at 1000ET.
