The pair closed in NY Friday at Y99.14 after rate had extended its recent recovery to Y99.45 on the back of month end fix demand. This underlying buoyant tone carried across into Asia with rate getting pushed up to a high of Y99.54 following the release of stronger than forecast Tankan. However, the reactive rally met Japanese exporter sell interest which countered, the corrective pullback to Y99.18 given added weight as the Nikkei turned negative but buyers were quick to take advantage of the dip and edged rate back to settle around Y99.40 into Europe. Traders report sell interest remaining in place above Y99.50, and said to extend to Y99.80, with further offers then seen into Y100.00. Weak talk has suggested barrier interest is back in place at that latter level. A large plain vanilla option with a Y100.00 strike is set to roll off at the NY cut. Stops noted above Y100.00. Euro-yen also reflected to softer yen tone as this rate was pushed up to Y129.49 into Europe, from an early low of Y129.04.
