JPY traded with slight weakness this morning vs the euro and the dollar. Dollar-yen opened at Y102.97 after dropping to an overnight low of Y102.86 last night in the US as euro-yen started the day at Y140.81. Japanese players returned from their long weekend with an appetite to buy dollar-yen up despite a lower open in Japanese stocks today. Japanese data releases this morning did no afvors for the yen and offshore accounts also executed rounds of dollar-yen buy orders. The pair climbed through Y103.30 after Japanese stocks opened while the cross went up to Y141.26. The move higher in dollar-yen continued through the morning despite the Nikkei 225 ending themorning down 2.05%, and the pair eventually traded a high of Y103.55, matching last night’s US session high while euro-yen peaked at Y141.48. Dollar-yen ran into selling from Japanese banks in the early afternoon to last trade at Y103.30 with the cross at Y141.15. For dollar-yen, a close today above the Y103.77 previous support is now needed to ease the bearish focus while on the downside, a close below the 100-day moving average, valued at Y100.53 would increase the potential for a deeper correction through Y102.50.
