The pair recovery off Thursday lows of Y100.83 extended to Y102.05 ahead of the session close (close Y101.99) with rate extending this correction into early Asia to Y102.59, the move driven by a decent recovery in the Nikkei (up 3.5% at one point). However, as this early Nikkei rally faded and reversed so dollar-yen was driven below Y102.00 to an eventual low of Y101.09 where it ran into importer demand between Y101.10/00 which cushioned the fall and allowed for a recovery to Y101.73. A pullback to Y101.33 was followed by a more orderly recovery into Y101.50/60. One trader has commented that they will focus on tonight’s/the week close, if below Y101.25 seen completing a bearish outside week reversal which could place pressure on Y100.80/60 early into next week. A close above to provide buoyancy. Euro-yen tracked dollar-yen moves, opening Asia at Y131.94 before edging up to Y132.52 before it fell back to Y130.71, recovering to Y131.46 ahead of the European open.
