The pair continued its fall from grace on Tuesday with a sharp move lower breaking below some minor support levels last night and traded a low of Y101.55 in the US but started in Asia edging higher from Y101.82 this morning. The pair traded an early Y101.96 high and faced initial resistance at Y102.00. It broke above that for a high of Y102.06 after Japanese stock markets opened higher with dealers noting healthy 2-way interest in the pair as Japanese demand off the Y101.55/50 region seen getting the upper hand over minor sell orders clustered around the earlier Y101.95/98 highs. Dollar-yen backed away around mid-morning and slipped to Y101.84 after running into further offers noted ahead at Y102.20. Further up, a break back above Y102.00 likely to face resistance at Y102.40/50, the area of last night’s US high (Y102.38), the 55-day movingaverage (Y102.39) and the 21-day at Y102.50.
