6 February 2001, 10:05 Asia FX
DOLLAR-YEN is holding just under its day high of Y115.25. After a
short squeeze complimented by active buying from U.S. names believed to
be trading on behalf of funds set it from it day low of Y114.50 in the
morning, it has held a firm tone. The Y114.50 support level was solid
with some talk circulating that the Bank of China was a buyer there.
Dealers said that any move lower will encounter support related to a
barrier options at Y114.00 and at Y113.50. On the upside the next key
level is at Y116.00. Today's price action erased the yen positive
sentiment built overnight tied to the large NTT DoCoMo share offering
and expected fiscal year-end repatriation. In general, flows were light
with only limited fresh news and the closely monitored Nikkei moved only
marginally lower.
EURO-DOLLAR continues to trade in a tight range between $0.9365 and
$0.9380. Flows are light in a market lacking fresh news. Talk of an
options expiry later at $0.9450 will free up some of the selling
pressure on the upside. Though, key resistance still stands at $0.9440
for now.
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