The pair opened at Y105.92 this morning as it recovered after a hefty overnight drop to a Y105.20 low. Early market moves were choppy with dollar-yen dropping intermittently to the Y105.80 region before Japanese accounts then put in bids for the pair. The subsequent rebounds were however also limited to around Y106.10 as dollar profit-taking emerged. That theme continued through the initial few hours of the session, with dollar-yen chopping around until mid-morning when it broke through for a high of Y106.18. In euro-yen, the cross also saw early demand after it slipped from the Y135.99 open to a low of Y135.67. Early dealings saw the cross being whipped about betweenthat low and Y136.01. Euro-yen broke higher in line with doallr-yen and reached a high of Y136.23 before easing a bit in the early afternoon. The cross was last at Y136.08 while dollar-yen was at Y106.17. Some traders say they expect further shorts to get squeezed toward Y106.30 while fresh sellers are also expected on a move toward Y106.50. Charts also show Y106.35 as the 50% retracement mark of Wednesday’s Y107.50 to Y105.20 intraday move.
