Early sell interest in dollar-yen and euro-yen was quickly reversed as Japanese trust banks and investors emerged as strong buyers. Those that tried to oppose through Y82.10-25 had to quickly reverse tack and cover shorts, the added demand taking the rates on to highs of Y82.55 and Y107.30. Traders Thursday had noted that they saw dollar demand interest emerging for end of month cover, the bids situated sub Y82.00 but stops placed above Y82.35 which were targeted and triggered this morning. Dollar-yen drifted off to Y82.34, euro-yen to Y107.02 with both pairs retaining an underlying buoyant tone. Some talk around of a very large Y82.90 one-touch option structure to roll off at the NY cut and could act to attract the rate higher through to the run off.
EasyForexNews Research Team