The pair traded a Y106.78 to Y107.01 range during the NY session last night before closing just below the high at Y106.95. It then started the Asia-Pacific session in a Y106.90/99 range in early dealings and then briefly re-visited last night’s Y107.01 high before backing away again to Y106.93 and then to Y106.54. Euro-yen meanwhile opened at Y136.89 and then ran into sellers which pushed it down to Y136.60 initially. Dollar-yen traded off the early low as China published its GDP data, and dollar-yen went up to Y106.89 again while the cross recovered a bit to Y136.76. The recovery fizzled out soon after and yen crosses encountered fresh selling pressure, pushing euro-yen down to a late morning low of Y136.48 while dollar-yen also tracked the moves lower to Y106.54. Dollar-yen was last at Y106.57 while euro-yen was at Y136.54. For now, talk of a large option expiry at Y107.00 later Tuesday may keep dollar-yen capped below that mark, with further offers then noted at Y107.15/20. Initial bids are noted at Y106.50, while below that, Y106.29 marks the 50% retracement of the pair’s Y105.20 to Y107.39 move seen from last Wed’s low to yesterday’s high.
