The pair started at Y102.35 in Asia Wednesday, from a US session of Y102.22-Y102.42, the spot drifted to Y102.30 before bouncing to touch a high of Y102.39 and reversed lower to hit fresh session low of Y102.24 before rebounding to Y102.29 last. The euro-yen cross opened at session high of Y138.66 from a NY range of Y138.46-Y139.74, the cross slid down to session low of Y138.30 before rebounding to Y138.50 last on short covering before Europe steps in. Early Japanese names paid up the spot on back of a breakout in UST 10-year yield but stronger offers in euro-yen capped dollar-yen. The cross continued to trade heavy after it broke the 200-dma (Y138.68) yesterday and breached NY’s low of Y138.46 in Asia, dragging the spot lower. Dollar-yen paused before NY’s low as the rate sits near 55-dma & 100-dma (Y102.25) with reported demand below Y102.15 and stops noted below Y102.00. Tech traders eyeing euro-yen stops to trigger at Y138.20 & Y138.00 for move to 2014 low at Y136.23 (low Feb 4).
