The pair opened at Y101.83 this morning and after an early Y101.82/86 range, began to creep higher as ongoing worries about events in Iraq and Ukraine led to continued moves into the safety of US dollar assets. Dollar-yen traded up to Y101.93 a few minutes after Japanese stocks opened slightly higher, but initially struggled to make further gains above Y102.00. The pair eventually broke through and set off some stop-loss buy orders at Y102.03, sparking further gains right up to the Y102.07 high before stalling. The pair ran into rumored selling from reserve managers at the high and then backed away to last trade at Y101.96. Layers of resistance remain in the Y102.15-21 region including 55 & 100-DMA’s and on the downside the 200-DMA (Y101.59) is acting as key support, although initial support has developed just above at Y101.71. Stops are noted below Y101.50 & Y101.30, and topside above Y102.25. A close above Y102.25 would then shift focus back to the Y102.79-103.02 region.
