The pair opened at Y98.77 this morning in Asia while euro-yen started at Y33.67. Both pairs gained early as hopes increased of a deal to resolve the fiscal debt impasse in Washington was due ahead. Dollar-yen reached Y99.01 and the cross peaked at Y133.84 after Senate lawmakers passed the debt deal, sparking a relief rally in Asian regional stocks and in risk assets. Sentiment however began to turn down again soon after news that the bill had been sent to the House of Representatives for their vote and expected approval. Dollar-yen retreated to the opening low near Y98.70 and then slipped through that for a late morning low of Y98.54. Euro-yen meanwhile fell to Y133.70 first and then extended the low to Y133.54. Dollar-yen was last at Y98.63 while the cross was also still hovering near the earlier low at Y133.61. Immediate dollar-yen support is seen around the Y98.40/30 region, where there are a bunch of moving average support levels, coming in below reported demand at Y98.50.
