Dollar-yen extended its recovery into early Asia, the rate pushing on from a NY close at Y96.29 to Y96.71 as traders reacted to a press report suggesting BOJ Governor nominee Kuroda could call an early, unscheduled, BOJ meeting Mar20. This bringing forward of possible action ahead of FY end caused yen to be sold off across the board. Rate dropped back to Y96.43, some saw it as a possible react to the release of better than expected Feb consumer confidence data (44.3 vs Jan 43.3). Rate recovered to Y96.65 before turning lower again, Dep BOJ Governor nominee Iwata tempering some of the market speculation when he suggested that no monetary policy change to be seen at Mar20 meeting, that would come at the April meet. Dollar-yen pressed to lows of Y96.36 ahead of the European open, with rate holding heavy at writing. However, most reports read still favour dollar-yen higher, Ichimoku analysts now setting sights on Y98.60, with recent calls that we could see Y100.00 gaining more supporters. Euro-yen saw similar moves, the rate pushing to an early high of Y126.04 before rate was pressed away from the Y126.00 area to a low of Y125.37 and holding heavy ahead of the European open.
EasyForexNews Research Team