The pair closed in NY Tuesday at Y95.38 having recovered off pullback lows of Y95.04, after earlier printing a high of Y95.76. Euro-yen had a strong bid tone throughout the European morning and NY open, flushing stops to highs of Y128.08. The move also coincided with euro-dollar’s clean break of the $1.3400 barrier to fresh 4 month highs. Profit take supply eased to settle in a tight range, closing in NY at Y127.80. Dollar-yen opened on a bid tone in Asia, the rate lifted to Y95.67 but with lack of follow through drifted lower ahead of the Tokyo fix. The pair found support in the dip and bounced from Y95.40 to Y95.55 but as the Nikkei index pared morning gains this gave traders a reason to sell the dollar taking the rate to an eventual low of Y95.17. Dip demand once again cushioned to settle around Y95.25/35. Bids are reported on the downside into Y95.05/00 and Y94.80, stronger behind at Y94.50 with stops set. Euro-yen tracked the dollar, the cross made a show back above Y128.00 to Y128.12, before momentum stalled, rate slipped to Y127.44, later bouncing to Y127.60/65 ahead of Europe.
