Dollar-yen spiked up from Y91.55 to Y91.70 into the NY close on reported hedge fund demand, with rate extending move to Y91.85 into early Asia before momentum faded as move met offers linked to the next barrier at Y92.00. Rate dipped to Y91.62 before fresh demand emerged, the break of Y91.85 triggering stops that drove rate through Y92.00 to Y92.27, filling defence ahead of the figure and reported offers into Y92.05 along the way. This move in dollar-yen, along with euro-dollar’s brerak above $1.3600 allowed euro-yen to extend its recent recovery, with momentum able to take out Y125.00 barriers with ease as rate extended to Y125.72. Dollar-yen and euro-yen retained a firm feel ahead of the European open, trading around Y92.17/Y125.56 respectively. Further barrier interest noted at Y92.50, some congestion noted between Y92.65/75 (barrier Y92.75) ahead of Y93.00 structures, with similar interest seen up to Y94.00. Euro-yen barrier seen at Y126.00. Tech traders have eyes on the Oct’11 low at Y93.00 in view. US employment report at 1330GMT key on the day, the effect on UST yields to drive react.
EasyForexNews Research Team