The pair dominated an otherwise subdued Christmas Eve session today after it opened at Y104.10 following Monday’s holiday in Japan. Euro-yen meanwhile started near Y142.59 after a tight Y142.21 to Y142.73 range last night in the US. Dollar-yen was supported off yesterday’s Y103.77 low as fresh demand appeared after the overnight moves lower. But the initial rally was limited as the market waited for cues from Japanese stock markets. As expected, the Nikkei 225 opened higher triggering further gains in dollar-yen and other yen pairs. Dollar-yen went up to an early high of Y104.23 and briefly struggled to clear last night’s Y104.24 high, as euro-yen went to Y142.75. Dollar-yen however got a fresh leg up later in the morning, as it caught a bid tone afterbreaking through Y104.30, to eventually reach a high of Y104.42 while euro-yen peaked at Y142.88. Some talk of dollar-yen offers ahead from Y104.45 to Y104.50 capped the move higher, keeping dollar-yen at Y104.40 in late morning trade while the cross came to rest at Y142.83. Dollar-yen stops remain below the Y103.70 level and more importantly below the Y102.50 level with a close below this level needed to hint at a deeper correction.
