The recent stronger USD weaker JPY theme continues this morning as dollar-yen opened at Y119.23, just off the overnight high of Y119.29, which also marked a new 2014 high. The pair witnessed a slow start as it slipped from a Y119.20/26 early range to a Y119.14 low a few minutes after Japanese stocks opened. Reported demand from Japanese names held the pair up initially but sellers were then spotted from the Y119.30/35 region. A weaker-than-expected Australia GDP reading provided the spark for a fresh US dollar rally, and dollar-yen began to rally soon after. It went up to Y119.30 but encountered further sellers there. There was a brief pause before dollar-yen resumed its ascent, trading up to Y119.44, its highest since Y119.77 traded on Aug 9, 2007. Dollar-yen was last at Y119.37 with initial support having developed on the hourlies in the Y119.00-03 region with small stops noted below Y118.95 with more noted below Y118.50, Y117.80, Y117.20 and Y117.00. Immediate focus remains on the Y119.82 monthly high from Aug 8 2007 with overall focus seeing bulls target the Y124.16 2007 high.
