The cross closed in NY at Y97.77, the rate having recovered off earlier lows of Y97.35 to Y98.20 before drifting off into the close. Rate picked up a bid tone into early Asia, with offers placed into Y98.00 providing the initial resistance before hedge fund and Asian demand emerged to take rate on to Y98.13. This move allowed euro-yen to trigger stops above Y128.25 which took rate on to Y128.46. The cross settled back between Y128.10/35 range into Europe. Dollar-yen offers seen placed between Y98.10/20, stops then seen on a break of Y98.25. However, heavier sell interest said to return from Y98.50 through to Y98.80, more into Y99.00 with stops above. Bids seen from Y97.50 and said to be layered every 20 pips down to Y96.80. Asian traders note Y98.00 strikes have seen good interest as well as 8-day Y98.50s and 9-day Y98.75s.
EasyForexNews Research Team