Dollar-yen achieved a technical target at Y91.20 (Mar’12 high) on Friday, the extended rally meeting willing profit take selling at this level which countered further upside gains. The rate pulled back to Y90.77 but the underlying buoyant tone remained in place into the close at Y90.90. Fresh demand into Asia edged rate back to retest Friday highs, with a push from around Y91.10 able to extend move to Y91.26 before momentum faded. Rate dipped back to Y90.85 before it settled in a range around Y91.00 ahead of the European open. Technical traders note channel resistance coming through around the Y91.25 level, with offers noted from this level, strengthening toward large barrier interest at Y91.50. Stops noted above this level, which if triggered to open a move on toward Y91.70/85 ahead of Y92.00. Support seen back at Y90.85/70 with stops below. Euro-yen extended its recent recovery to Y122.91 in Asia (NY high Y122.78) with rate easing off highs to settled between Y122.20/60 into Europe. Traders remain open to reaction from Japanese officials, ex-EconMin Takenaka reported saying in the WSJ that yen has room to fall further toward Y95.00.
EasyForexNews Research Team