The pair opened at Y117.55 this morning as it held near overnight lows toward the end of the US session after losses accelerated in US stocks and risk appetites suffered leading to increased yen demand. Euro-yen also started weaker, at Y132.68 and slipped early to Y132.40. Dollar-yen and euro-yen recovered after the lows were traded, with dollar-yen regaining to Y117.65 after the release of Japanese retail sales data and then extending that to Y117.70/80 even after Japanese stocks opened lower. Dollar-yen ran into sellers off Y117.80/119.00 and it retraced a bit, back to Y117.60 as euro-yen also pulled back to around Y132.74 after an initial high of Y133.02. Dollar-yen saw a fresh move higher as buying by onshore importers hacked away at the earlier reported offers, with the move through Y118.00 seeing a number of stop-loss buy orders getting hit. The rise also seemed to correlate with the Nikkei 225, which ended the morning off its initial lows. Dollar-yen rallied further to Y118.10 while the cross went to Y132.68, and were last traded at Y117.92 and Y132.90,
respectively. Dollar-yen stops are noted above Y118.30 and resistance then coming in at the Y118.86/119.00.
