The reversal to risk on in NY Wednesday, as market saw comments from US Pres. Obama and House Speaker Boehner as positive for an eventual Fiscal Cliff Compromise, along with an upbeat Beige Book, acted to weigh on yen as the Japanese currency gave back the intraday gains. Dollar-yen recovered off traded lows at Y81.68, closing the NY session back above Y82.00 with move extending on to Y82.22 in early Asia as it reacted to LDP Abe comments calling for unlimited BOJ easing until inflation reaches 2.0%. Euro-yen tracked this move, having corrected off its pullback lows Wednesday of Y105.28 to Y106.30 into the close, extending on to Y106.51 in Asia before meeting resistance from Japanese names. Rate settled between Y106.20/50 ahead of Europe. Dollar-yen settled between Y82.10/20 ahead of the European open.
EasyForexNews Research Team