The pair recovered after Friday’s sharp move lower following the US NFP release with initial resistance noted at the Y102.58 high that was seen in the aftermath of the data release. The pair opened at Y102.54 and broke above that resistance in early dealings amid an improved risk environment, aided also by a positive open in Japanese stocks. Euro-yen meanwhile opened at Y139.56 and spent the morning in a fairly tight Y139.40 to Y139.80 range. Dollar-yen and euro-yen gave up their initial gains around mid-morning, with dollar-yen slipping to a Y102.32 low while the cross also drifted lower. Dollar-yen was last at Y102.36 while euro-yen was at Y139.46. Higher highs and lows Thursday and Friday combined with correcting oversold daily tech studies are suggestive of further dollar-yen topside with the 21-day moving average at Y103.09 serving as the initial focus to start the new week. A close below the Y101.40 level is needed to shift focus back to last week’s triple daily bottom around the Y100.75 level.
