The JPY started the morning on a firmer note, as the yen buying that dominated Friday’s session sent dollar-yen breaking lower in thin early trading. Dollar-yen fell through Y117.00 and triggered stops below. The pair traded a low of Y116.95 as yen crosses weakened and risk sentiment took a hit from weekend news of China’s semi-official PMI falling below 50. It recovered as liquidity returned to the market and flows stabilized, with dollar-yen then creeping back above Y117.00. It traded up to Y117.40 even though Japanese stocks opened lower and continued to push higher through the morning. Dollar-yen peaked at y117.65 in the late morning and has since continued to hold just off that. It last traded at Y117.56. Euro-yen meanwhile started the day with a drop to Y132.00 from around Y132.88. It recovered after that as the euro strengthened on a report about the Swiss central bank which boosted the euro against the Swiss franc. Euro-yen topped out at Y133.19 in the late morning and last traded at Y133.16.
