The pair closed in NY at Y93.34 after pulling back from a NY high of Y93.52. Rate touched a session high of Y93.38 in opening trade before getting pressed to lows of Y93.00, eventually settling around Y93.20 through the Asian afternoon. Traders noted that dollar-yen squeezed lower despite the Nikkei, like other Asian equity markets, traded positive, with main downside pressure seen from option structures getting unwound, as well as some month/FY end repatriation flows. Bids seen from Y93.00 to Y92.90, more into Y92.70. Talk of stops below this latter level, though some suggest the larger stops are placed under Y92.60. Euro-yen closed Tuesday at Y121.80, just off late recovery highs of Y121.87 with the corrective pullback extending to Y121.49 in early Tokyo trade before it edged back to settle between Y121.70/80 into Europe. US ADP data at 1315GMT to provide some boost to activity in yen pairs as traders will begin to turn attention to Friday’s NFP release.
EasyForexNews Research Team