USD started the morning on a slightly firmer footing after the Bank of Canada’s surprise monetary easing last night, with dollar-yen opening at Y117.97 and risiong through Y118.00 initially. It got up to Y118.16 as the NIkkei 225 opened higher but fell back when the Nikkei reversed direction. Dollar-yen retreated to the earlier Y117.80 low and then ran into supportive bids from Y117.50 which triggered another rebound. Dollar-yen this time broke out of the morning range and pushed through rumored sellers at Y118.20/25, including the 61.8% retracement of yesterday’s Y118.84 to Y117.18 intraday move at Y118.21. Late morning short-covering in euro-yen ahead of tonight’s ECB decision coaxed dollar-yen further up and the pair then topped out at Y118.34. Euro-yen traded a Y137.31 high from its earlier low of Y136.77 and after opening at Y136.96 this morning. Dollar-yen last trades at Y118.11 while the cross was at Y137.01.
