The pair consolidated at the upper end of the week’s range vs the dollar last night and closed around Y101.80 with sellers having capped attempts higher at the Y102.16 level. Dollar-yen started in Asia just below Y102.00 and was carried back through Y102.00 as Japanese stocks opened in positive territory this morning. It got up to a Y102.16 high after the release of Japanese machinery orders and bank lending data but failed to make further headway again. The pair then eased to Y102.00 and slipped below from around midmorning, to hit a low of Y101.79 as Japanese stocks ended higher but well off their earlier highs. Dollar-yen was last at Y101.90, with minor offers still in place ahead from Y102.16 while larger supply is expected at the Y102.20/25 area. Further on, the Y102.47 resistance remains key with bulls needing a close above to ease the bearish pressure whereas a close above Y103.10 is needed to shift overall focus higher. Bears are currently targeting the Y100.75-101.20 region with the key 200-day moving average at Y100.80 and a close below not seen since early Oct 2013.
