The pair reacted to last night’s US NFP data with a drop to Y97.86 low with euro-yen cross also declined in line to Y134.43. Dollar-yen started in Asia with a gap up to Y98.42 but quick returned to where it had closed in New York at Y98.15 as the weak dollar tone resumed. The pair found minor support initially from Y98.00 as minor demand was seen forming around that level while residual bids were seen intact around Y97.80 from overnight. Support however capitulated and dollar-yen gave up after a brief rebound to Y98.12. The pair broke below Y98.00 around mid-morning and has been heading south since. It fell through the overnight low and falls picked up pace after Y97.60/50 gave wayin the early afternoon. Dollar-yen traded a low of Y97.35 with techs then showing support lower at the 200-day moving average at Y97.28. The pair briefly traded below that for Y97.26 and managed a weak recovery back toward Y97.40 in the afternoon, and was last at Y97.39. On top, only a recovery above Y98.56 brings the pair back into the daily Ichimoku cloud, with the cloud top then valued at Y98.96.
