The pair stepped into Asia at Y102.32 while euro-yen at Y141.55 post FOMC rally, both pairs traded a fairly tight Asia range of Y102.22 to Y102.49 & Y141.30 to Y141.73 respectively. Traders noted Japanese banks were early dollar buyers on Gotobi demand pushing the rates to a high of Y102.49, off NY’s high of Y102.68 as decent offers above Y102.50 capped the pairs’ advance. Subsequently dollar-yen drifted down to an initial low of Y102.24 before renewed buying interest ahead of Tokyo fixing pushed it to Y102.47, but strong offers forced it to fresh session low of Y102.22. Offers at Y141.67 in euro-yen capped the pair in early trade but renewed buying interest forced a new daily high of Y141.73 with the euro edging up to high of $1.3835 but strong offers forced therate to Y141.39 and it rebounds to Y141.50 last, dollar-yen bounces to Y102.31 last. Regional stocks plunged on perceived hawkish Fed statement and the Nikkei tumbled 1.45% last. Dollar-yen capped below 100-dma at Y102.45 for now with medium offers at Y102.80 while demand seen at Y102.00 on approach. Euro-yen stays above 21-dma at Y141.28 as medium offers at Y141.80 capped the rate for now before Europe steps in.
