The pair closed in NY Friday at $1.6167 after correcting away from an earlier high of $1.6224, to $1.6155, before edging back up into the close. The rate opened Asia around $1.6172 before consolidating for the early part of the overnight session between $1.6172/78. Early Tokyo demand for dollar-yen saw rate ease back to $1.6168 before it managed to recover to overnight highs of $1.6180. Rate then settled back between $1.6170/75 into the Asian afternoon before coming under heavier downside pressure which took it to $1.6153, recovering back to $1.6160 ahead of the European open. The dollar was seen trading with a slightly stronger tone through Asia but traders continue tosee the main underlying tone as dollar negative, the unit suffering from the recent US debt ceiling impasse, with its potential effect on the taper time-table. Demand seen placed between $1.6155/50, more toward $1.6140 with stops placed on a break below. Stronger demand then noted between $1.6125/20, with dip interest expected to emerge into $1.6100. Resistance $1.6180, $1.6200 ahead of stronger interest into $1.6220/25. A light domestic data calendar today, with focus turning to Tuesday’s late release of US NFP.
