Late profit take sales pared gains to close in NY Friday at Y85.87, the rate having eased off 28 month highs of Y86.63 following speculation that the BOJ could introduce further stimulus measures to boost the economy. Euro-yen closed at Y113.49, the rate having eased off spike highs of Y114.02 after earlier posting a low of Y113.30. Thin markets continued overnight in Asia with the Tokyo holiday and the dollar extended Friday’s losses to Y85.67 in early trade, flushing stops on the move. Reported demand cushioned moves and the rate bounced back above Y86.00 on broad dollar strength, extending to Y86.18. Late profit take sales eased as the pair consolidated gains ahead of Europe. Offers reported at Y86.30/35, a break opens Y86.64 (28 Dec high). Euro-yen opened on the defensive to Y113.20, before tracking euro-dollar’s extended recovery to Y113.80. Tight range trade continued throughout the session closing ahead of Europe at Y113.55. Tech support seen on the downside at Y113.27/20 (5-day ma, Asian low), a break opens a move towards strong bids into Y113.00.
EasyForexNews Research Team