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Recovery off Tuesday's NY low of.........>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: Recovery off Tuesday's NY low of Y111.16 touched a high of Y111.48
before it settled around Y111.40 into the close. Strong Goto-bi demand emerged
at the this morning's Tokyo fix which allowed recovery to push up to Y111.69,
the move prompting some to cover USD shorts, with decent demand also noted for
AUD/JPY which also fuelled the rise. Once the fix demand faded so rate drifted
back to Y111.53 ahead of Europe. Traders highlight option expiries between
Y111.85/112.00 amounting to $1.25bn for today's NY cut, while others also note a
Friday Y111.75 expiry for $1.48bn, suggesting these interests are adding to
resistance on any potential move toward Y112.00. Added to this expectation that
repatriation flows ahead of Japan's Financial Year end will also provide
headwind resistance. Position adjustments also noted ahead of Thursday's Japan
holiday and tonight's US FOMC announcement. Support seen from Y111.16 through to
Y111.00. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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