Yen came under pressure in late NY Monday as market reacted to comments from US Tsy’s Lael Brainard supporting Japan’s efforts to bring an end to deflation. This, added to weekend comments from Japan EconMin Amari as he suggested efforts to take the Nikkei to 13,000 by end of March/Fiscal Year, helped to continue the pressure on the yen into a returning Tokyo market Tuesday. Dollar-yen had extended its recovery off early Monday lows of Y92.36 to Y94.46 into the close with early Asia pressing the rate back to Y94.13 before fresh buying emerged into Tokyo that took it up to an overnight high of Y94.39. Rate held firm for most of the session before getting sold off ahead of the European open to Y93.87 before edging back to Y94.00. Euro-yen saw its recovery off Monday lows of Y123.50 extend to Y126.56 into the NY close, with early Asian trade consolidating the move between Y126.10/50. Rate also broke lower ahead of the European open, trading down to Y125.59 before recovering to Y125.70. Tech traders still have upside targets at Y95.70 and Y128.70 but note that supporting Kijun and Tenkan lines recent steep appreciation is beginning to slow and prompts caution.
EasyForexNews Research Team