JPY ran foul of the dollar’s strong rally on Friday in the wake of the better-than-expected payrolls data, with dollar-yen clearing out offers at Y99.00 to trade a high of Y99.23. The gains ran out of steam in the face of rumored option-related offers at Y99.50 and Y100.00 and dollar-yen started this morning’s session at the US session high. It slipped after a marginal high of Y99.26 as the dollar gave back bost of its Friday gains while risk assets rallied instead following strong Chinese data over the weekend. Dollar-yendropped back through Y99.00 and traded a Y98.94 Asian session low around mid-morning with bounces off that also largely limited to just Y99.05. Euro-yen also moved in tandem with dollar-yen as it slipped off a Y132.59 high after opening at Y132.48. The move picked up speed around midmorning and the cross marked a Y132.21 low, with a limited bounce seen since, despite a mildly firmer euro. Dollar-yen was last at Y99.00 while euro-yen was last at Y132.29. The Y133.70-75 region where the 21-day moving average is located will be key resistance for the cross this week with further sideways trading within a Y131.00-133.75 range expected.
