The pair gained marginally this morning in Asia as risk appetite weakened amid worries about potential conflict in Ukraine and as regional stock markets started lower. But yen pairs have since come off recent lows as stocks pared initial lows and as PMI readings from China aided sentiment. Dollar-yen opened at Y101.49 after ending Friday’s US session around Y101.80 while euro-yen opened this morning at Y139.74 after ending last week at Y140.49. Dollar-yen moved down in early trades touching a Y101.26 even before Japanese stocks opened lower as the market anticipated a sharp drop in theNikkei 225 at the open. Euro-yen also followed the pair down to a Y139.37 low. Both pairs recovered some ground later in the morning but remain well below their previous closes. Dollar-yen was last at Y101.40 while the cross was at Y139.70. The immediate focus for dollar-yen has shifted lower to a retest of the triple daily bottom in the Y100.75-77 region and the 2014 low at Y100.75. A close above Friday’s high is needed to ease the bearish focus a little while a close above the Y102.83 Feb 21 high is needed to give the bulls a little hope and see focus shift higher to the Y103.44-86 region.
