The pair opened at Y107.14 early this morning while euro-yen started at Y135.52, with both pairs then creeping higher in early dealings. Dollar-yen got up to Y107.25 while euro-yen gained to an early high of Y135.61. A weak open in Japanese stocks drove yen pairs off their initial lofty positions and euro-yen dropped to Y135.61 as dollar-yen also encountered sellers above the high, from around Y107.40. Dollar-yen pulled back further to a low of Y107.10 but a recovery in Japanese stocks toward the morning close helped lift dollar-yen and euro-yen off their lows. Dollar-yen recovered through Y107.25 and went through Y107.30 for a high of Y107.33 while the cross re-visited the early session low of Y135.61and then to Y135.68. Sentiment was also supported by the headline reading of HSBC’s China flash PMI, although a closer look at the details revealed some cause for concern. Euro-yen was last at Y135.63, stillnear the top of the range while dollar-yen was at Y107.30. Offers remain in place at Y107.40, with Japanese names noted at Y107.50 and the Kijun line above that at Y107.66, while on the downside, buyers are noted at Y106.50 and in the Y106.10/00 area.
