The pair started the week firmer at Y101.86 in Asia Monday, correcting higher from last Friday’s Asia low of Y101.48 and staged a strong rally to session high of Y102.10 from an early morning low of Y101.76. Early session Japanese banks paid up the pair to filled strong selling orders at Y102.00 on the platforms but further offers at Y102.10 capped the spot. After the rally, the spot was confined to a range of Y102.00/10 in Asia afternoonsession. Dollar bulls emerged after the Nikkei staged a strong rally as Japan MOF survey showed Q1 Capex growth highest in nearly 2 years. Firmer dollar-yen dragged euro-yen higher as the cross started the week at Y138.84, surging up to session high of Y139.13 from an early low of Y138.67 before retreating to Y139.08 last. Euro-yen continued to pullback higher after it broke back above the 200-dma last Friday, breaching NY’s high of Y138.88 paving the way to Y139.37 (high May 27) with medium offers noted at Y139.50. Dollar bulls looking to force the rate above Y102.15 (high May 27) & Y102.20 (55-dma) for a revisit to 2014 high but reported strong offers at Y102.25/30 could dampen the correction higher. Dollar-yen retreats to Y102.02 last
