USD/JPY Analysis

The pair opened at Y101.47 this morning, just at the US session high traded on Friday and and then drifted lower in light dealings. Friday’s close below the 200-day moving average (Y101.71) marked the first time it has done so since October 24, 2013 and made the case for weaker dollar-yen through the morning today. Dollar-yen continued down to a low of Y101.26 from an early high of Y101.48. Good supply before the Tokyo fix weighed on dollar-yen though Japanese names paid the spot higher in early session but reported bids at Y101.20-28 supported a bounce to Y101.30. Dollar-yen remained heavy through the morning and was last at Y101.29. Focus now shifts to Y100.77-82 region with stops reported but strong demand noted at Y101.00 & Y100.80. Immediate support seen at Friday’s US low near Y101.35 with stops then seen below Y101.20, andstrong demand then noted toward Y101.00. Euro-yen meanwhile cross started the week at Y138.39 in Asia from a NY range of Y137.99 to Y138.48, the rate plunged to session low of Y138.20 from a early session high of Y138.45 and rebounded to Y138.29. Subsequently the cross was given at session low twice and was confined to Y138.20 to Y138.29, last at Y138.22.