USD/JPY started in Sydney at Y118.95, after offshore markets witnessed a Y118.51 to Y120.38 range. It got up to an early high of Y119.11 but failed to make further ground from there. It began to ease over the next few hours and then traded down to Y118.86 as pre-open indications suggested a down day for Japanese stocks. Dollar-yen stayed near the lows after the Nikkei 225 started it session, holding between Y118.86 and Y118.99. It inched up further to Y119.06 but the lack of market interest to follow-through saw the pair give up again the late morning and it slid back down below Y119.00. The pair witnessed another sharp move lower in the afternoon, this time trading a new session low of Y118.46 a move blamed on a disappointing JGB auction result and as stops were hit on the way down. The pair was last at Y118.60. Below today’s low so far, immediate support cited around the Y118.43/33 region while the 21-day moving average is at Y118.26. Resistance lies at Y119.26, which marks the 38.2% fibo of the Y120.48 to Y118.51 fall.
