JPY reached a high of Y98.42 last night in the US following the release of the Chicago report, but was then dragged down by a weak euro, which translated its woes via euro-yen cross falls. Dollar-yen started in Asia near Y98.34 as euro-yen opened at Y133.60, just off its Y133.35 US session low. Dollar-yen continued wtih a mildly heavy tone but initial falls were limited to just Y98.14 as the overnight Y98.08 low provided support. That however capitulated in the early afternoon as euro-yen’s losses persisted, with thecross sliding beneath Y133.00, setting off a series of stop-loss sell orders. That helped drive dollar-yen through Y98.00, hitting its own stops below. Euro-yen sank to an Asian low of Y132.65 while dollar-yen retreated to Y97.85. The pair was last at Y97.87, with the initial support seen just below at Y97.82/80, where the daily Kijun and Tenkan lines are valued. Euro-yen was last at Y132.63.
