The yen is going to be controlled at the term pressure to get a covering of short dollar positions by economic information and also speculation on a yuan revaluation. Purchasing interest is not likely, although there is scope for a dollar correction more powerful. The inherent pressures still seem to be for a stronger yen and the US money will fight to push outside 103.8 before a new assault on 102.5.
The dollar found support in the 102.5 degree against the yen, but it's fighting to make any advancement considerably above the 103.0 amount and was shut to 103.1 in ancient Europe on Tuesday. There have been media reports that the Bank of Japan will intervene at rates across 102.0 and this will discourage competitive dollar selling at the very short term.
The Japanese financial statistics was unsatisfactory using a 1.6% industrial manufacturing decrease for October compared with expectations of a marginal growth, although the unemployment rate increased up to 4.7percent from 4.6percent. The information that is unsatisfactory will suppress the capacity for yen gains.
The IMM data listed a decrease in yen positions of over cutting on on the position. Positioning is less intense, although there'll still be pressure to get a covering of short dollar positions.
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