The pair closed in NY Tuesday Y96.08 after rate had been pressed to lows of Y95.59 in thin liquidity trade, traders suggesting the sell off caused by Wall St negativity. However, rate was able to recover into the close, and after a slight dip back to Y95.93 in opening Asian trade on expectations that the Nikkei would open lower, the rate managed to continue the recovery through the session on fix demand and short covering/profit take buys. Rate edged to an initial high of Y96.59, dipping to Y96.24 before getting a late session boost on to Y96.87 into the European open. Offers are seen into Y97.00 with traders noting that the Y97.00 and Y97.20 levels hold the strikes of expiring options at today’s NY cut (same level strikes rolled off at the Tokyo cut). Difficult to pin down which was leading today but traders again watch activity in Nikkei and JGB markets, though some have suggested activity in yen was a providing an overnight lead. Similar activty seen in euro-yen as this rate extended its recovery off a NY low of Y127.11 to a late session high of Y128.88.
