JPY traded with slight gains this morning against the dollar and the euro, although the yen had given back a large segment of the gains toward the end of the morning session. Dollar-yen opened at Y101.63 this morning after slipping below Y102.00 late Friday in the US session. Early focus was on news about Japan’s pension investment fund but that quickly moved to Japan’s Q4 GDP data release. The data were below forecasts and that put additional weight on dollar-yen with the pair falling to a Y101.38 low afterthat. But dollar-yen and euro-yen rebounded later in the session as regional stocks held on to their early gains, and dollar-yen was last at Y101.59 while euro-yen was at Y139.29, after a Y138.96 to Y139.50 range. Dollar-yen’s break through the base of the Ichimoku cloud at Y101.54 and then the 100-day moving average at Y101.42 is pointing to the likelihood of further downside pressure through the session today. Further down, support is now seen at the triple daily bottom at Y100.75 and the 200-day at Y100.21.
