Dollar-yen was given a boost in US afternoon trade on release of slightly hawkish FOMC minutes. The rate spiked to highs of Y87.35, before meeting resistance from the 2 Jan high and later eased to Y87.20. Euro-yen trade was tied to a narrow Y113.65-114.21 NY range. The cross pared gains on release of FOMC minutes and closed at Y113.78. Dollar-yen opened on a bid tone in Asia and after strong demand from importers and custodial names took out the Y87.50 barrier, the pair flushed stops on the move and extended to highs of Y87.76. Asian reserve manager supply pared light gains, profit take sales added further weight to Y87.56. Fresh demand bounced and the rate lifted to its highest since Jul 10, peaking at Y87.83, before easing to Y87.75 ahead of Europe. Reported CTA offers at Y87.90 with large exporter offers protecting the next barrier at Y88.00. Euro-yen tracked dollar moves and lifted from Y113.80 to Y114.52 into the European open. Traders look ahead to release of US Non-Farm Payroll data at 1330GMT for added direction.
EasyForexNews Research Team