UD/JPY opened the week at Y118.74, early trading has seen the pair drop to Y118.18, the main theme from traders is that the move was stop loss generated. The pair however bounced off that low as support kicked in at Y118.15, which marks the 50% fibo retracement of dollar-yen’s Y115.82 to Y120.48 rise. The pair got up to Y118.78 a few minutes before the stock market opened on anticipation of a strong performance there. It traded around Y118.70 at the release of Japan’s Q5 GDP data and then pulled back a bit to Y118.57 after the data. In Japanese stocks, the Nikkei 225 did indeed open higher and ended the morning just off the high at 18,031.84. Dollar-yen saw little meaningful follow-through selling after the GDP numbers and it held on near Y118.70 soon after. There was also some talk going round of demand interest from a semi-official name keeping the pair supported. It traded at Y118.48 in the late morning/early afternoon. Traders have cited Japanese exporter supply from Y119.00 to Y119.10. Support remains at Y118.15, marking the 50% fibo retracement of the Y115.82 to Y120.48 rise, resistance lies at Y119.06 which marks the 38.2% Fibonacci retracement of the Y120.48 to Y118.18 fall.
