The pair was confined to narrow ranges this morning vs the dollar, as the market focused on tonight’s FOMC decision for clues. Risk sentiment remained stable after no major deterioration in the Crimean crisis although concerns about Chinese corporate defaults and recent yuan weakness remained. Dollar-yen opened at Y101.44 this morning and gains were limited to just Y101.50 before the pair retreated again. It fell below the opening mark on rumored large offers from above initial highs overwhelmed. The losses were however contained as Japanese demand for dollar-yen and yen crosses held firm, with dollar-yen marking a low of Y101.29 before recovering a bit. Dollar-yen was last at Y101.37, not much changed from Y101.44 at the open, facing hefty offers and stops above last night’s Y101.95 US high, from Y102.00/10 region. Initialsupport remains at Y101.20 with stops noted below. The 21 day lower Bollinger band comes in around Y101.18 today and it should be noted that closes below are a rarity so attempts lower may lack follow through.
