The pair witnessed a generally subdued morning today, with dollar-yen opening at Y102.78 while euro-yen started at Y141.53. Dollar-yen was carried up to a Y102.96 morning high in early trade as short positions were covered wand with early market attention focused on news of the US budget deal while the market paid little notice to the release of Japan’s machinery orders data and CGPI. Gains were shortlived and dollar-yen then eased to Y102.75 while euro-yen also slipped off a Y141.69 high to Y141.32. Dealers said Japanese accounts were spotted selling dollar-yen from above Y103.00 but the move back was also limited amid rumored large bids from Y102.55, and associated stops below Y102.50. Dollar-yen extended the initial lows to Y102.60 in the late morning while the cross drifted down to Y141.14 but those dollar-yen bids heldfast keeping the pair from exploring the downside further. Dollar-yen was last at Y102.66 while euro-yen was at Y141.29. Further down, decent dollar-yen stops are noted below Y101.60 with a close below needed to end bullish hopes and see focus shift lower to retests of the Y99.10 level.
