Dollar-yen extended its recovery off Friday’s intraday lows of Y83.86 to Y83.28 into the NY session close with move extending into early Asia through to a high of Y84.50. Thin liquidity, Japan closed for a holiday, allowed for relatively light demand to edge rate to the mentioned highs, with short covering seen ahead of the release of BOJ Minutes Tuesday (Xmas Day) when Tokyo will be the only major centre open. Failure to move above resistance at Y84.50 saw rate drift off to Y84.32 before it settled around Y84.40 ahead of the European open. Offers remain in place at Y84.50, more at recent highs of Y84.62 with a break above to open a move toward stronger resistance between Y84.70/80 and toward barrier interest at Y85.00. Support seen into Y84.20. Euro-yen closed in NY Friday at Y111.08, after recovering off a pullback low area between Y110.70/60. Recovery extended to Y111.37 in Asia, the move driven by euro-dollar and dollar-yen’s rallies, before settling around Y111.20 into Europe.
EasyForexNews Research Team