Profit take sales noted Tuesday, as dollar-yen backed away from its earlier Asian highs of Y99.67 (falling just shy of tech resistance at Y99.75 50% Y124.14/75.35), with strong sales noted from the macro community, though the retreat met support into dips, finding decent support placed ahead of Y98.50. Rate closed in NY at Y99.04 after it had seen a volatile session, recovering off lows of Y98.58 before topping out at Y99.35 ahead of the close. Early demand in Asia revisited that NY high, touching Y99.34 before dropping back to Y98.93. Recovery attempts were capped by Y99.20, with rate pressing this area into early Europe. Traders have commented that large option plays are currently keeping the rate anchored around Y99.00, noting large expiries for Thursday’s NY cut From Y98.00 through to Y99.50. Until this interest is out of the way it is suggested that a challenge on Y100.00 could have an easier passage. Barrier interest has also been noted at Y99.75 and at Y100.00. Ichimoku traders still note Y100.80 as a near term target. Apart from an early spike to Y129.89, the cross was held in a range between Y129.40/80 through the main part of Asia, trading around Y129.70 into Europe.
EasyForexNews Research Team