Dollar-yen extended its recent recovery Tuesday, the market reacting to the early standing down of BOJ Governor Shirakawa to Mar19 (joining the departure data of his two deputies), with rate pushing through Y93.50 to Y93.65. A brief pullback to Y93.46 in early Asia quickly attracted fresh demand with rate able to step its way higher through the session before pushing through barrier interest at Y94.00 (Y93.96 38.2% Y124.14-75.13) to Y94.06. Euro-yen tracked this move, the rate extending to Y127.71 during the Asian afternoon. Profit take demand for yen emerged ahead of the European open to press dollar-yen back to Y93.68/euro-yen to Y127.05. Technical traders still see further upside potential, one highlighting Y95.70. Now that market has a date for the change in the BOJ old guard it will open speculation to who will take over, as well as the two new deputies. Dollar-yen offers seen to Y94.20, with stops Y94.20/25. Further offers into Y94.50. Support seen from Y93.50 through to Y93.20, stops through Y93.00.
EasyForexNews Research Team