The pair opened at Y101.90 this morning and ran into mild early weakness, which nudged it down to Y101.80 in the opening hours. It was holding just under when Japan’s Q GDP data were released and the pair briefly recovered to Y101.90 immediately after the better-than-expected reading. Japanese stocks however opened lower and dollar-yen turned back down after the start, with the losses picking up a bit of speed for a low of Y101.66. Rumored demand from domestic and offshore names then kicked in, with some dealers attributing that to fixing demand on Gotobi day. Dollar-yen crept back up through Y101.80 again and then went through Y101.90 for a session high of Y101.93 in the late morning but a lack of follow-through coupled with sporadic selling interest towardY102.00/10 pushed the pair back down again. Dollar-yen was last at Y101.83. Resistance continues to be noted on the hourly time frame at the Y101.95 level with small stops seen above Y102.00/10. Overall, a close above the Y102.36 level would end bearish outlook for the pair and see the focus shift back to the Y102.76-103.12 region.
