USD/JPY opened in Asia at Y120.45, very close to the top of the Y119.29 to Y120.48 range seen yesterday, broad based US dollar strength encouraged by higher US treasury yields the catalyst for the weaker yen. It held a Y120.15 to Y120.47 range through the early hours as the market waited for the release of Japan’s machinery orders and CGPI data. The data failed to inspire much of a reaction in the market and dollar-yen held near Y120.20 soon after. The pair then weakened as Japanese exporters sold the pair lower, pushing it down to a low of Y119.99 but gains in Japanese stocks helped contain the losses and dollar-yen managed to claw back some of the losses. It last traded at Y120.21. Further losses through the Y120.00 mark, where there’s been a notable expiry tomorrow, could be limited though with buy orders reported at Y119.85/80 and at Y119.55/50, with stops not seen until we get below Y119.45, dealers say. Resistance is noted around Y120.80 (several previous highs in Dec and Jan).
