The JPY regained some lost ground today as the US dollar entered a period of profit-taking and mild consolidation ahead of tonight’s US non-farm payrolls data release. Dollar-yen had traded up through the psychological Y120.00 mark during the overnight session, its highest since July 2007, but spent most the morning today holding just under that level. It started at Y119.79 and then eased to a low of Y119.70 in early dealings. A mild recovery was then seen with dollar-yen then taking back the Y119.90 mark as the US dollar continued to hold a relatively well-bid tone. Gains were then capped at Y119.96 as sellers re-emerged at Y120.00 and dollar-yen then spent the rest of the morning consolidating around the Y119.90/94 area. The pair managed to edge above Y120.00 in the early afternoon for a high of Y120.07 and was last at Y120.02. A break above last night’s Y120.25 high is seen as necessary for a move toward reported option-related sellers at Y120.50. More offers are seen at Y120.80 and Y121.00, with stops scattered in between.
