Dollar-yen closed NY at Y93.57 after recovering off a session low of Y93.29, aided by higher US yields. This recovery extended into early Asia, the move up gaining a boost on Gotobi Day linked demand for the Tokyo fix, along with traders reacting to a BOJ Governor short list, published in the Daily Yomiuri, that had failed to mention Muto (seen as less aggressive on bold monetary easing) as well as the release of weaker than expected Japan trade data. Dollar-yen traded on to Y93.83 but met stiff resistance which prevented further gains. Euro-yen closed NY at Y125.25, moving up in tandem with dollar-yen to Y125.90. As momentum faded yen pared these early losses, dollar-yen drifting back to Y93.14 before correcting to Y93.30 , while euro-yen eased off to Y124.90 before edging back to its NY close, into Europe. Ichimoku analysts still favour further upside progress in both pairs, but have noted that the Tenkan line in the past two sessions has flattened and would suggest a weakening in the recent upside momentum. Dollar-yen may still have room for a retest on Y94.40, ahead of Y95.70. Euro-yen similar for Y127.70 ahead of Y128.70.
EasyForexNews Research Team