Dollar-yen closed in NY Friday at Y94.46 after recovering from a late pullback low of Y94.28. Rate was pressed to an early low of Y94.26 as it took its early lead from the opening negative pressure on the euro as no agreement had been reached into the market open, with euro-yen easing from Y122.75 to Y122.12. Euro recovered, aided by no further negative news, with the announcement of a tentative Cyprus deal, then confirmation, taking the cross up to Y123.85. This move bounced dollar-yen to Y94.97, with early Japanese going long on expectation of a positive Nikkei. Offers placed ahead of Y95.00 countered and allowed for a pullback to Y94.70 before fresh demand edged rate back to Y94.94. Failure to push through Y95.00 prompted spec longs to cover back, the rate easing to Y94.65 ahead of the European open. Euro-yen settled around Y123.40. End of the month-FY approaching with traders noting that exporters have been holding off end year covering. However, should this selling emerge they expect retail investors (Mrs Watanabes) to be around picking up dollar-yen into dips.
EasyForexNews Research Team