The pair opened at Y102.11 after it ended on Friday at Y102.08 and then extended the early highs to Y102.14. The move was reflected in euro-yen also with the cross opening at Y138.80 and then creeping up to Y138.87 in early dealings. Despite some mild pullbacks off the the highs, dollar-yen was initially supported off an early Y102.06 low and traded between that and Y102.14 through much of the morning. The release of better-than-expected China HSBC flash PMI however triggered a broader US dollar selldown, as risk assets rose and dollar-yen slipped below Y102.00, dragging euro-yen down with it. Dollar-yen fell to a Y101.94 low while the cross went to Y138.66. Dollar-yen was last atY101.95 while euro-yen was last at Y138.72. Dollar-yen resistance is noted ahead, near Friday’s US high at Y102.20, the 100-day moving average at Y102.22 and then the 102.38 FOMC reaction high, followed by sell orders at Y102.50. Layers of support remain in the Y101.59-75 region with a close below the 200-day moving average at Y101.65 to shift focus to the Y100.75-85 region. Stops are noted below Y101.50 and above Y102.40.
