Dollar-yen saw extended highs of Y96.55 on its initial reaction to the strong NFP release Friday but sank back to Y95.50 before lifting back above Y96.00 into the close. Similar moves for euro-yen which had seen highs of Y125.92, dropped to Y123.81 before closing the week at Y124.86. Yen continued to trade with an underlying soft tone, aided in part by BOJ Governor nominee Kuroda comments suggesting stronger efforts to get inflation to 2.0%. Dollar-yen dipped under Y96.0 only to meet willing buyers which cushioned the move and allowed it to edge up to Y96.26, but offers between Y96.20/30 restricted upside progress. Traders report that institutional investors have scattered demand interest below Y96.00, the interest said to be for UST purchase. Offers seen from around Y96.25 through to Y96.40 with talk of stops placed from Y96.45 and extending to Y96.65. Early Tokyo demand for euro-yen edged this rate to an eventual high of Y125.18, settling around Y125.00 into Europe. Cross offers seen into Y125.20, stronger between Y125.40/50 and between Y125.90/00.
EasyForexNews Research Team