The JPY ran into early weakness at the start of the session today but reversed direction after that as the US dollar also backed away from early highs on profit-taking. The focus remains on non-farm payrolls data due tonight and Japanese market players were being extra cautious due to a Monday holiday in Tokyo. Dollar-yen edged up to a high of Y119.89 after opening at Y119.69 while euro-yen also opened at Y141.12 and rose to an early high of Y141.36. Early strength in Japanese stocks kept the pair holding aloft but dollar-yen turned back after that, sliding through the opening levels and dropping to Y119.47 a few minutes before the release of China’s inflation data release. It retraced partially to Y119.63 soon after and then slipped to another session low of Y119.27 as positions were cut in the early afternoon. Dollar-yen last trades at Y119.36 while euro-yen was at Y140.95.
