The JPY witnessed minor gains this morning as the USD weakened although trading ranges have remained relatively narrow so far, as the market looks ahead to tonight’s US non-farm payrolls data. Dollar-yen started the day today at Y117.51 and was initially supported on risk appetite buoyed also by resting Japanese importer demand near Y117.00. The pair marked an early high of Y117.55 this morning as Japanese stocks also opened higher but there was little follow-through as the US data release tonight remained as a key event risk. The pair turned lower after that as the market looked to consolidate the early gains and as rumored exporter offers near Y118.00 added weight on the pair. Dollar-yen fell to Y117.34 initially and then extended the low to Y117.27 in the late Asian morning. Reports of an earthquake hitting some provinces in Japan didn’t really rattle the market and Japanese stocks ended the morning up 0.58%. Dollar-yen however failed to benefit significantly from that and last traded just off the low so far at Y117.31. Exporter offers are noted still in place toward Y118.00, while near-term resistance is also seen at the 21-day moving average at Y117.78
