The pair started the week firmer at Y121.47 after an unexpected strong US employment data last Friday. Early demand before slew of Japan data lifted the pair to hit fresh multi-year high of Y121.86, buoyed by strong buying interest in the euro-yen cross. The rate pullback lower to touch session low of Y121.34, after better current account balance data with improving bank lending and shrugged off the weaker Q3 finalised GDP. Offers above Y121.80 soothed early demand before data, renewed selling interest from Japanese banks post data, pressured the spot down to session low before demand emerged on softer aussie. The euro-yen opened at Y149.20, extended a rally to fresh multi-year high of Y149.78 from an early low of Y149.14 before Japan data, the rate plunged to Y149.24 post data but recovered to Y149.46 before retreating to Y149.31 and dollar-yen eases to Y121.52 last. Reported strong offers/barrier at Y122.00, with further offers at Y122.50 while below there’s option expiry today at Y121.50 worth $1.95 bln.
