The pair opened at Y106.25 this morning in Asia after peaking at Y106.47 last night during the US hours, failing again to break through a rumored Y106.50 barrier. Reflecting the action seen overnight, dollar-yen was weighed down in early dealings by profit-taking interest, and the pair sank to a Y106.04 low, matching the low traded in New York last night, several minutes after the release of August CGPI and July machinery orders data. Dollar-yen then recovered, in line with yen crosses, and was then carried back up to Y106.30 as euro-yen also rebounded to Y137.47 after an early low of Y137.31. Dollar-yen extended the gains to Y106.38 highs as the cross also powered ahead to a Y137.55 morning high. Another round of profit-taking interest capped the moves in the late morning, with dollar-yen then easing to Y106.26 while euro-yen pulled back to Y137.41. Dollar-yen was last at Y106.27 with the cross at Y137.44. Initialdollar-yen support has developed in the Y105.71-106.03 region with stops noted below Y105.70 today. As gains continue above the Y105.00 level bulls are now targeting the Y110.68 Aug 2008 monthly high
