JPY started at Y100.02 and euro-yen at Y134.61 in Asia morning after Yellen’s testimony before the Senate Banking Committee. Yellen cites US recovery is still fragile and important not to end the QE program too early or too late especially when short-term rates are near zero. US stocks rose with continued monetary stimulus and NIkkei jumped higher on open, last up 1.7%. Dollar bulls took the opportunity to clear offers at Y100.20 in early morning trade and some stops were triggered hitting an intraday high of Y100.31. Dollar-yen has breached back above the Y100 handle since two months ago and demand during Tokyo fix kept the pair supported below Y100.20 but sellers capped dollar-yen at Y100.30 and it retreats to Y100.20 last, before Europe steps in.Further offers and barrier at Y100.50 seen and dollar bulls may push it to retest previous high of Y100.61 (Sep 11). Meanwhile, fresh buying interest in euro-yen pushed it to session high of Y134.94 before retreating back to Y134.83 last.
