Dollar-yen closed in NY at Y78.50 just off the intraday high of Y78.58. The pair ground lower in early Asian trade to Y78.42 before dip demand recovered and settled in a tight range with many on the sidelines ahead of the BOJ interest rate decision tomorrow. Leverage demand bounced to Y78.60 and the rate extended in tandem with euro-yen to print highs of Y78.71, later easing on profit take sales ahead of Europe. Key tech resistance seen at Y78.84/88 (100 dma, Ichimoku cloud base), through here opens strong offers at Y79.00 with stops set. Euro-yen closed in NY at Y101.30 having bounced off earlier lows of Y100.72. The cross traded flat with dollar-yen through the Tokyo fix before the same leverage demand lifted to Y101.60, flushing CTA stops on the move. Rate extended to Y101.78 on reported US names/model funds, later easing to Y101.60. The pair remains in consolidation mode ahead of the ECB interest rate decision where no change in rates is widely expected. On the topside tech resistance seen at Y101.74 from the 200 dma, a break opens strong offers into Y102.00 with stops set.
EasyForexNews Research Team