The pair closed in NY Friday at Y99.52 (off a session high of Y99.68), the rate having picked up a bid tone through the day’s session as markets began to take note that Japan would not be censured for recent policy moves that have weakened the yen. Early demand into Wellington took advantage of thin conditions to advance this recovery to Y99.90 but strong sell interest placed between Y99.90/100.00 provided stiff resistance. Rate eased off to Y99.70 into the Tokyo fix, with Japanese corporate accounts noted buyers (some said to hold interest in the Y100.00 level, which if broken would trigger dollar calls from lower down) post fix took the rate back to retest the Y99.90/100.00 area. Some talk that size of offers placed here amount to around $1.5bln, with stops above of an identical amount. Rate settled around Y99.80 through the balance of the session, easing off to session lows of Y99.59 as it looked to close a small gap left from the NY close/Asia open to Y99.53, but traders have noted decent Asian demand seen into the dip. Market awaits announcements from Japanese life companies as regards investment plans (Asahi Mutual Life considering adding up to Y50bln in foreign bonds to portfolio).
EasyForexNews Research Team