The rate nudged up to $1.2939 into early Asian dealing before it settled between $1.2930/35 into the Tokyo open. The initial drop in the Nikkei, falling 199 points at the open, was met by strong demand into the dip by local investors which bounced the index back into positive territory. This recovery lifted dollar-yen from 101.05 to Y102.01, with the strong demand for dollars weighing back on euro-dollar as this rate dropped below $1.2923 (Monday afternoon pullback low), triggered minor stops through $1.2890/95 before finding a base at $1.2884. Rate recovered, stepping its way to $1.2923 before it settled between $1.2910/20 ahead of Europe. For this morning French consumer confidence and Spanish YTD budget update seen in focus in an otherwise data light calendar. Asian traders report demand in place from $1.2880-50, more at $1.2830. Resistance remains in place toward $1.2950, with further interest seen extending toward $1.2965 with stops above. Stronger offers remain in place on approach to $1.3000.
