A day of sharp reversals for the Japanese yen this morning after it opened at Y118.01 vs the dollar. The pair had traded a high of Y118.98 last night ahead of the US open last night but the failure to breach Y119.00 left it vulnerable to profit-taking interest, which continued at the start of the morning as the Friday session got underway. Dollar-yen did however mark initial gains, as it inched back up through Y118.00 for a high of Y118.38. The gains the stalled there and dollar-yen retreated toward Y118.00. The losses then intensified after wire reports cited finance minister Aso saying the pace of the yen’s recent falls has been too fast. Dollar-yen crumbledthrough Y117.50 and slid back to a low of Y117.35 in the late morning. A mild recovery has since been seen but the pair continues to hold below Y118.00, tolast trade at Y117.73. There were no major data due out of Japan this morning, while Tokyo market will be closed on Monday for a public holiday. Next support for the pair is seen at Y117.22/20 area with demand then seen down toward Y117.00.
