The pair saw a relatively muted session this morning after it opened at Y101.68 vs the dollar and Y140.70 vs the euro. Dollar-yen edged marginally lower in initial dealings, touching Y101.59 and then rebounding to Y101.68. A lower open in Japanese stocks weighed on dollar-yen and euro-yen, with the former dropping to a low of Y101.55 a few minutes after the open while the cross went to Y140.53. A mild recovery then followed as Japanese importers were seen bidding dollar-yen up and as euro-yen also benefited from the euro’s failure to trade decisively lower this morning. Dollar-yen ran into someresistance around Y101.60/65 but eventually pushed it way through for a high of Y191.77 in the late morning as Japanese stocks ended the morning in positive territory. Euro-yen also shot through the early high of Y140.71, to hit a high of Y140.81. Dollar-yen was last at Y101.69 while the cross was at Y140.74. Downside dollar-yen stops and bids are intact below last night’s Y101.46 low, scattered from Y101.40 through Y101.30/20 and down to Y101.00. Techs also show the key 200-day moving average noted at Y101.09, with a close below to be seen as a significant bearish event. Sellers meanwhile are expected toward Y102.00.
