The pair witnessed choppy action after Friday’s release of the US March employment, seeing an initial react lower to Y103.58 before rebounding on revised data to Y104.13. The pair started this morning around Friday’s Y103.20 US session low, at Y103.23 and after a brief move to Y103.40, slipped below that Friday low for Y103.17. Market remain on edge but flows were said to be limited ahead of tomorrow’s BOJ decision amid tal that further stimulus measures may be in the offing. Dollar-yen was pressured by the poor performance in Japanese stocks earlier but losses were generally contained. Dollar-yen was last at Y103.31. Immediate focus now shifts to layers of support in the Y102.47-102.90 region which includes key moving averages with a close below Y102.47 needed to confirm a break of these supports and see bears firmly back in control and targeting the Y101.20.72 region. Initial resistance is now noted on the Y103.58 level that previously supported.
