The morning started with the JPY in demand as the market leaned heavily towards risk aversion with equity markets looking heavy with EUR/JPY also falling in tandem with euro-dollar. The cross retreated to a Y140.57 low in very early dealings today but recovered after that while dollar-yen was supported off its opening levels. Dollar-yen inched up to an early peak of Y118.85 as reported demand from Japanese and US accounts were seen, from Y118.60 and Y118.80, but ran into difficulties as Japanese stocks started their session weaker. Toward mid-morning, dollar-yen found fresh demand interest which carried it through Y119.00 as Japanese stocks managed to end the morning on a slight positive. Further extension past Y119.00 were initially stifled by reported sellers at Y119.10 but the pair eventually pushed through for a high of Y119.18. Further sellers from Y119.20 then capped the move and the pair eased again in the early afternoon. It last traded at Y119.03. The cross meanwhile brushed off the early euro weakness and recovered to Y141.51 in the early afternoon as well, to last trade at Y141.32.
