The weekend win for the LDP and NKP parties in the Japanese lower house election, though expected, acted to further soften the yen with yen pairs marked higher into the Asian open. Dollar-yen had closed NY Friday at Y83.52, marked up to Y84.55 in pre official open trade, though offers were then put in place at Y84.45/50 at the official open. Rate drifted back to Y84.30 before macro sales provided the weight to ease it on to Y84.00. Euro-yen was marked up to Y111.32, from its Friday close at Y109.90, with initial profit take sales able to ease it back to Y110.85. A brief return to challenge the early highs was again rebuffed with rate then dropping back to Y110.55/50 as Japanese exporters added weight from around Y110.80. This latter move knocked dollar-yen to extended lows of Y83.80. Both pairs then drifted higher, euro-yen to Y110.80, dollar-yen edging back above Y84.00 ahead of the European open. Tech traders will warn that there are still gaps showing on yen charts (Friday closes) which need to be filled. Dollar-yen offers remain in place around Y84.50/60, bids Y83.80, Y83.50.
EasyForexNews Research Team