The pair closed in NY Wednesday at Y97.80 after recovering off a session low of Y97.24. Rate had been driven lower as markets reacted to the sharp downside revision in Q1 US GDP data at its final reading, but with data seen backward looking (Q2 components already looking better) and little effect in the revision to employment, allowed for a dollar recovery during the afternoon, with part of this demand seen linked to end month interest. Rate extended highs to Y97.87 in opening Asian dealing, but reports of strong sell interest placed at Y97.90 managed to thwart any further upside progress. Rate eased back to Y97.57 before it settled back between Y97.70/85 through the Asian afternoon. Toshin linked demand has been a mentioned factor in yen pair buoyancy, along with end month interest. Dollar-yen offers remain into Y97.90 with reports of CTA stops placed on a break above. Support Y97.25/20 with stops below.
