JPY stepped into Asia Thursday at Y102.75 from NY’s range of Y102.44-Y102.75, euro-yen opened at Y139.72 with both rates sliding down to Y102.59 & Y139.56 before a brief recovery to Y102.65 & Y139.61 and plunged to fresh low of Y102.54 & Y139.42. Softer UST yields sparked long liquidation and talks of a momentum account selling euro-yen after the cross broke yesterday’s low of Y139.56, dragging dollar-yen lower. The rates stalled near the lows before renewed selling interest forced the pairs to fresh Asian lows of Y102.45 & Y139.35 as the UST yield continues to drift lower in Asia afternoon. Dollar-yen corrected lower from yesterday’s high of Y102.80 but reported bids at Y102.40 ahead of 100-dma (Y102.33) supported dollar-yen as it bounces to Y102.52while supply noted at Y102.95/00. Euro-yen pullback from yesterday’s high of Y139.96 but rebounds to Y139.45, near the middle of the Bollinger envelope approaching the 21-dma (Y139.33) with medium demand noted at Y139.20. Traders readjust positions ahead of ECB meeting tonight.
