A holiday in Japan today made for very illiquid conditions as USD/JPY started the day at Y119.43, just off a Y119.62 high traded during yesterday’s session. The pair slipped early to a Y119.29 low, in part due to a move lower in yen crosses, with euro-yen falling to a Y135.03 low after it opened at Y135.20. There was some talk of various accounts selling the pair down but with the absence of Tokyo markets, there was little follow-through. The move also uncovered demand from prop names which sparked a rebound to Y119.58 while euro-yen also recovered to a session high of Y135.46. Dollar-yen’s recovery was initially capped by sellers at Y119.60 but it eventually ran through those and traded a late morning/early afternoon high of Y119.66. The pair last traded at Y119.64 while euro-yen was last at Y135.44. Immediate dollar-yen supported is noted at Y119.12/10 while resistance was earlier highlighted at Y119.67, ahead of strong offers at Y120.00. Tech charts also show Y119.12 as the 38.2% fibo retracement of its Y118.31 to Y119.62 rise, while further down, Y119.05 also marks the top of the daily Ichimoku cloud.
