The cross closed a volatile US session at Y102.26 after rate had extended recent recovery highs to Y102.75, dropped back to Y101.85 as longs were squeezed following the failure to break above Y102.75/85 resistance to pressure the much reported barrier at Y103.00, with soft US data providing the catalyst for the pullback. Rate recovered to Y102.61 with pullbacks holding above Y102.00 ahead of the close. Release of stronger than forecast headline Japanese GDP data provided the rate with an added boost but failed to move above Y102.30, with component capex falling 0.7% Q/Q, as well as the deflator index dropping to -1.2% from -0.7%. Exporter sell interest emerged into the Tokyo fix to press the rate lower, touched Y101.97 before settling back around Y102.20 through afternoon trade. Traders noted importer demand interest in place between Y102.00/101.90, with stops below (also noting stops placed below Y130.85 in euro-yen), with offers remaining in place into Y102.30, more at Y102.50 with stronger interest then seen from Y102.75 through to barrier interest at Y103.00.
