The pair started this morning’s session at Y101.93 after closing at Y101.97 late Friday in the US. Early dealings were muted with the market showing little response to comments from BOJ Goveror Kuroda published over the weekend. Kuroda said in an interview, that the economy will stay on the BOJ’s baseline recovery track, repeating that the drop in demand after the sales tax was raised to 8% from 5% has been as expected. Dollar-yen initially tested highs near Y102.00 but failed to make further ground immediately after the release of the BOJ’s minutes of its April 30 policy meeting. Dollar-yen however brokehigher in mid-morning trade and got up to Y102.06 but again failed to sustain the gains and dropped back to Y101.96. Dollar-yen was last at Y101.95, with immediate focus on the May 15 high at Y102.12 and the 55-day moving average, at Y102.22 currently. A break of the 55-day would target a move back to the May 2 peak at Y103.02. Euro-yen meanwhile was last at Y138.85, after closing on Friday at Y138.97. The cross marked a Y138.82 to Y139.01 range this morning but remained within a Y138.60-139.15 recent range. Initial resistance is noted at Y139.15/33.
