After dollar-yen had settled through Christmas Day between Y84.60/90 the rate continued its recent march higher Wednesday, pushing up to a high in this session to Y85.73 after barrier interest at Y85.50 was taken out. Rate closed in NY at Y85.63 with early Asia taking advantage of the extended rise to book profits, the early sales easing the rate to Y85.48. Euro-yen had seen highs Wednesday of Y113.39, closing in NY at Y113.23. This rate tracked the early dollar-yen dip, easing to Y113.03 before strong CTA demand emerged to punch this rate higher. Stops triggered above Y113.40 then Y113.50 provided the momentum to take rate on to Y113.65, the move taking dollar-yen to Y85.87 with an Asian corporate a noted major buyer. One trader has noted that the short term market is looking for fresh long re entry levels, having shorted/taken profit ahead of Y85.50. Rate has settled between Y85.75/80 into Europe. Offers seen between Y85.85-0.8600. Topside option structures continue to draw demand. Euro-yen offers seen into Y114.00, bids Y113.10/00. New PM Abe want for a weaker yen, along with US ‘Fiscal Cliff’ negotiations, remain the key drivers of FX direction.
EasyForexNews Research Team