The pair got an early lift from initial losses in yen crosses this morning and dollar-yen was pulled down to a Y102.10 low after opening at Y102.14, while euro-yen dipped to Y140.87 after opening at Y141.03. The move however uncovered Japanese demand for dollar-yen from around Y102.00 and triggered a recovery to Y102.34 a few minutes after the Japanese stock market opened, as euro-yen also climbed back to Y141.11. Dollar-yen extended the morning gains and traded through Y102.50 offers to a Y102.58 high after the dollar rose in the wake of the disappointing HSBC flash PMI reading, while thecross went to Y141.50. Dollar-yen continued to hold near the top of the morning range, and was last at Y102.48 while euro-yen was at Y141.42. Dollar-yen offers are said to be lined up from Y102.75, with a close above Y102.68 needed to reconfirm bullish focus and see immediate focus shift to a retest of the Y103.09-79 region.
