The pair received an early lift from a so-called “black-box” fund at the start of the Asian session, pushing dollar-yen down after its Y99.60 NY close. Dollar-yen sank to a Y99.47 low as euro-yen also fell from an initial Y130.77 high to Y130.60. The selling interest faded soon after and dollar-yen began to recover in line with the broader US dollar recovery theme. It rose through the early Y99.71 high but briefly paused at Y99.78, ahead of the Tenkan line of the Ichimoku cloud at Y99.80. Fresh demand appeared in the early afternoon, rumored to be macro and technical names, which then triggered a fresh leg higher for dollar-yen, while euro-yen also gained in line. Dollar-yen traded a Y100.18 high before running into fresh offers coming in at Y100.40, just ahead of buy-stops at Y100.20, while the cross continued up to a Y131.16 high ahead of the European start.
