JPY rose to its strongest vs the dollar since early-Feb last night during the European session but was in a mild recovery mode since the end of the US session. Dollar-yen started at Y101.34 after gapping down at the open and then edged higher in the early hours of the session, reaching Y101.48 after Japanese stock markets opened in positive territory. The gains were initially capped there and the pair eased again to the earlier lows before rebounding as yen crosses, particularly aussie-yen, rallied on a boost in risk appetite following the release of the HSBC China flash PMI for May. Dollar-yen rebounded to trade a fresh session high of Y101.69 but failed to clear the rumored sellorders believed to be located from Y101.70 to Y101.80 and then up to Y102.00. In other yen crosses, euro-yen opened at Y138.74 and reached an early high of Y138.85 before extending that to Y138.91 after the flash PMI. Dollar-yen was last at Y101.56 while the cross was at Y138.91. Immediate support for dollar-yen is still seen at Y100.75, the 2014 low so far traded on Feb. 4.
