Dollar-yen found a base at Y93.27 Wednesday, after pulling back from an earlier posted high of Y94.07. The move above Y94.00 was seen completing several traders’ target around this level, with the corrective pullback seen relatively shallow compared to the rate’s recent recovery. Tech traders still see room for further upside potential, Ichimoku analysts (favoured in Japan) see Y95.70 as the next upside target, noting that trade Wednesday closed above the first key support at Y93.18 (5-dma), with the Tenkan and Kijun lines still rising. Trade in Asia was contained within Y93.30/71, opening Europe around Y93.60. Offers seen into Y93.80, more between Y94.00/10. Barrier interest reported at Y94.25 with stops above. Traders have suggested that the Abe govt may not want dollar-yen to push above Y95.00 this side of G20. Demand seen from Y93.30 through to Y93.00. Release of machinery orders overnight did provide some yen strength, but this was soon countered. Euro-yen closed in NY at Y126.57, off intraday lows of Y125.93, the rate dipping back to Y126.04 into early Asia before recovering, edging up to Y126.86 into Europe.
EasyForexNews Research Team