Dollar-yen closed in NY at Y96.11 after seeing a corrective pullback off high of Y96.59 to Y95.68 before it recovered into the close. Trade through Asia was contained within a Y95.89-96.28 range with some Gotobi day demand noted. Ichimoku analysts have noted that Thursday’s action has produced a doji which has some suggesting that the recent rise could be close to a top and will watch today’s action to see if this potential outlook is confirmed. CitiFX Wire have noted that the Kijun line is beginning to level out which could signal that the upward momentum is gradually waning. However, some still see room for a retest of recent highs at Y96.71 with a move on to Y98.60 not completely ruled out as yet. Euro-yen which had pushed up from Y124.06 to Y125.24, before easing off to Y124.50 in Thursday trade, managed to close in NY at Y124.95, with this late recovery continuing through Asia to an extended high of Y125.34 before it settled around Y125.10 into Europe. Mixed signals for this pair noted too, though upside still holding favour. Approval of the three nominees for the BOJ governorship by the upper house had little effect.
EasyForexNews Research Team