9 October 2002, 09:05  Forex - Dollar/yen lower midmorning Tokyo on profit-taking as hits resistance

/www.fxserver.com/ The dollar/yen was lower in midmorning on profit-taking after the currency saw a sharp run up overnight before meeting technical resistance towards the 125-yen area, dealers said.
The slide in the euro also helped the yen, they added.
"The yen remains extremely bearish but technically there's resistance on the upside," said Hideki Naito, managing analyst at MMS.
"Yesterday, the dollar rallied to 124.63 yen, which was only shortlived, on option-related buying at the 124.50 yen, but maybe there were decent offers (to sell) at 124.50-125.00 yen," he said.
"This was partly just US funds, some profit-taking and option barriers ahead of 125.00 yen," he said.
Comments by Wim Duisenberg, president of the European Central Bank, effectively ruling out an imminent rate cut, also helped remove some downward pressure on the yen, after recent sharp losses against the euro.
"The euro lost some ground after Duisenberg made some comment which was negative for a rate cut, which also weighed on the euro/yen and so the dollar/yen," Naito said.
However, the dollar is seen supported at the upper end of 123 yen.
"If the dollar/yen builds a base at 124.00, further tests of the upside toward 125 yen will be seen before the end of the week and ahead of the long weekends in Japan and the US," he said.
The dollar still faces a series of technical barriers ahead of it, with 124.67 yen the 50% retracement of its move from 133.84 to 115.50 yen, and just slightly above its overnight high.
The 125.30 yen level is the mid-way point between the year's high and low, with the 200-day moving average seen at 125.95 yen. "Japanese exporter offers and option-related spot selling are seen at 126 yen," Naito added.
Tokyo 10.05 am New York 2.56 pm London 3.23 pm
Dollar
yen 123.84 down from 124.34 124.39
sfr 1.4959 down from 1.5007 1.4997
Euro
usd 0.9801 up from 0.9787 0.9785
stg 0.6307 up from 0.6290 0.6275
yen 121.37 down from 121.51 121.72
sfr 1.4661 down from 1.4665 1.4674
Sterling
usd 1.5539 up from 1.5536 1.5591
yen 192.43 down from 193.17 194.17
sfr 2.3244 down from 2.3314 2.3390
Australian dollar
usd 0.5458 down from 0.5471 0.5482
stg 0.3512 down from 0.3521 0.3514
yen 67.59 down from 68.02 68.19
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