The pair got off to a choppy start this morning in Asia, with liquidity thinned out due to a holiday in Japan today. Dollar-yen opened at Y118.35 and rose in early dealings to Y118.44, as reported demand from around Y118.30/20 provided the initial lift. The move ran aground soon after and dollar-yen retreated quickly as those early bids dissipated and it then dropped to a Y118.12 low. A mild recovery followed with dollar-yen then inching up to Y118.38 before another leg lower was then seen. Demand for yen crosses held up from around mid-morning and dollar-yen then staged another rally back through the initial highs, trading up to Y118.51 before running into sellers off the high. It retraced part of the move and slipped back to last trade at Y118.31, with next support cited down at the Jan. 6 low of Y118.06, and further demand noted below at Y118.00.
