The pair started the day at Y116.16 below the overnight low of Y116.24 as yen crosses such as the euro continued to feel the pain from yesterday’s SNB announcement. Dollar-yen fell to an early low of Y115.90 as euro-yen also dropped to Y134.71 after opening at Y135.13. Both pairs recovered after that with dollar-yen running into buy orders and option-related interest near Y116.00. Dollar-yen ran up to Y116.42 while the cross rebounded to a high of Y135.44. Dollar-yen and euro-yen retreated again as Japanese stocks opened sharply lower, with dollar-yen slipping to Y116.04 while the cross eased to Y134.91. Another small rebound was then seen before dollar-yen slid back again to a new low for the session at Y115.85. Late in the morning, rumored demand from a semi-official Japanese account triggered another recovery in dollar-yen and euro-yen although traders expressed doubts about the accuracy of these. Dollar-yen was last at Y116.28 while euro-yen was at Y135.28. For dollar-yen, Japanese exporter supply is cited between Y116.55 and Y116.65. Support is noted at Y115.55, marking the December 2014 low, while just beneath that, there is also another barrier at Y115.50 and protection is expected ahead of that level.
