Dollar-yen closed in NY at Y93.23 after rate had been able to correct off earlier lows of Y92.82 to Y93.78 before drifting lower through the NY day. Rate extended this corrective pullback to Y93.14 in early Asia before bouncing back up to Y93.64, the move aided by stronger than expected post Tokyo fix demand, along with BOJ candidate Iwata comments that a dollar-yen rate of between Y90-100 would return the Japanese currency to equilibrium, with a weaker than forecast GDP release also providing some pressure (though most said to have disregarded this number). Rate dipped back to Y93.29 before quickly picking up fresh demand that sees rate back toward overnight highs into Europe. BOJ policy was left unchanged, though this too didn’t cause any major surprises with Governor Shirakawa having announced he will step down Mar19, but they did upgrade the economic assessment. The close above the 5-dma is seen keeping recent underlying buoyant tone in place, though momentum is slowing. Euro-yen closed NY at Y125.30, off intraday highs of Y126.57, the correction extending to Y125.22 in early Asia before recovering toward Y126.00. Rate settled between Y125.60/80 into Europe.
EasyForexNews Research Team