The pair opened at Y108.26 this morning and gained in early dealings toward the overnight high of Y108.35. It hit a Y108.33 high before then turning lower, with profit-taking interest cited for the pullback. The pair initially found minor support from a stronger domestic stock market but eventually slipped through Y108.00 for a low so far of Y107.86. Dealers also cited unwinding of long cross yen positions for profit-taking, with Japanese accounts the noted dollar-yen sellers from Y108.50. The earlier dollar unwinding tapered off in the late morning, allowing dollar-yen to claw its way back through Y108.00. Dealers also noted reports of a patient in New York havingtested positive for Ebola causing a move back into the safety of US dollar positions. Dollar-yen was last at Y108.02, with initial support now noted in the Y107.60-108.00 range with trailing stops and stops from traders who bought the Y107.60 break noted below Y107.50. The overnight close back above both Y107.60 and the 21-DMA (Y107.98) sees immediate focus having returned to the Y108.75 resistance and overall focus on the Y110.09-68 region.
