Closed in NY Wednesday at Y97.41, having bounced between Y97.07-54 following the FOMC announcement, with that Y97.00 area continuing to keep rate buoyed. Rate was pressed down to Y97.09 is early Asian trade, dealers noting that main sell weight seen on the back of euro-yen fund sales. Asian reserve demand was again noted ahead of the Y97.00 level, some suggesting the Y97-104 DNT option structure is still in place (despite Tuesday touching a low at Y96.99). Rate recovered to Y97.42 before drifting down to Y97.13 ahead of the European open. Asian traders have mentioned that decent sized CTA stops are placed from Y96.90 through to Y96.60 (said to be linked to offers placed between Y97.80/98.00), though others note decent demand remaining in place between Y96.80/70. Technical traders view the March high at Y96.71 as critical on a close basis. Other offers seen back in place from above Y97.50.
