Euro-yen came under sell pressure from Japanese accounts into early Tokyo trade, with traders linking the move to a weak Nikkei opening which was seen as risk negative. The cross was pressed to a low of Y107.04, from an opening level Y107.35, but decent demand sitting into Y107.00 cushioned the move and allowed rate to recover above Y107.30 before settling around Y107.20 into Europe. Dollar-yen was squeezed away from its NY close at Y82.24, the rate taking direction euro-yen’s slippage and trading to a low of Y82.04 where it met decent demand sitting between Y82.05/00. Stops below Y82.00 remain in place, a break to open a deeper move toward Y81.80. Traders note a lot of interest in expiring barriers between Y82.85-83.50, which, though not expected to be threatened, could act to pressure the rate lower through the day though market appears interested in buying into dips.
EasyForexNews Research Team