Volatile start to the week for yen pairs as markets reacted to the Troika decision on Cyprus to penalise bank depositors as a prerequisite for a bail out. Dollar-yen, and especially euro-yen, were marked down at the open to the week’s trade, the former from Y95.28 to Y94.03, before it extended this move in early trade to Y93.57, while the cross dropped from Y124.58 to an Asian open at Y121.76, extending to an early low of Y121.15. Dollar-yen recovered to Y94.99 before drifting off to Y94.33 ahead opf Europe. Euro-yen recovered to Y122.70 before it too drifted back to Y121.64 before edging back toward Y122.00 into Europe. The gaps evident on the charts will be of interest to tech traders, with markets expected to close these. Asian traders noted that Tokyo remained interested buyers into dips. Euro-yen, which was seen as a lead pair through the overnight session, will again dictate yen moves as it will react to the fall out during the day to the weekend news.
EasyForexNews Research Team