Dollar-yen powered up to an extended high of Y95.10 in NY Thursday, the yen losing ground across the board which also saw euro-yen rally to Y124.58. Dollar-yen closed the NY session back at Y94.80, but was back up to challenge Y95.00 into release of Japan GDP data. A flat reading for Q4 prompted another round of yen sales, the spiking back up from an initial pullback to Y94.85 with stops through Y95.10/15 providing the momentum that took rate to extended highs of Y95.45. Option barrier interest has been noted at Y95.50, with protective sell interest noted ahead. However, CTA stop entry interest has been noted from above Y95.55 which could provide the next boost to upside progress. Euro-yen closed NY at Y124.25 before it too rallied higher, moving through its NY high and on to Y124.99. This failure ahead of Y125.00 expected to prompt talk of barrier interest at the figure. A break here to open a move toward Y125.35/50. Focus to turn to this afternoon’s US jobs data at 1330GMT, the effect on US yields to provide the next directional driver. End month/FY could prompt some further repatriation interest into rallies.
EasyForexNews Research Team