Dollar-yen was seen correcting off a late NY recovery high of Y88.73, closing this session at Y88.66, with early Asia extending this move to Y88.42 before buyers emerged into the dip. The recovery was aided by decent gains on the Nikkei with move then boosted as news reports of North Korea declaring nuclear and rocket tests (mentioning the US in mind) hit the wires. Rate saw an initial high of Y89.31 before momentum faded, which allowed it to drift back to Y89.05. Release of stronger than forecast China PMI provided the next buy trigger and took rate on to session highs of YY89.46. Rate was trading around Y89.30 into Europe. Euro-yen basically tracked dollar-yen moves, the rate recovering off an early low of Y117.59 to an eventual high of Y119.12, opening Europe around Y118.92.
EasyForexNews Research Team