USD/JPY opened in Sydney at Y118.68, toward the lower end of the Y118.55 to Y119.42 seen in offshore markets, the yen gaining ground on a more dovish than expected FOMC Minutes. Japanese trade data were slightly better-than-expected this morning but the yen market largely ignored the numbers with dollar-yen holding around Y118.71 as Japanese stock market opened a touch higher. The Nikkei 225 extended early gains to its highest since 2000 and helped to push dollar-yen up to a Y118.83 high. The pair backed away to Y118.68 soon after but held a generally firm tone. Another wave of dollar weakness in the mid-morning saw dollar-yen slide through earlier noted demand at Y118.50, to a session low of Y118.44. The pair last trades at Y118.61, traders cite Japanese exporter supply seen on an approach to Y119.00. Initial support is seen at Y118.40 (21DMA) below there at Y118.15, marks the 50% Fibonacci retracement of the Y115.82 to Y120.48 rise. Traders have also reported demand from Japanese corporates between Y118.30 and Y118.40, while also noting Y118.28 marks the top of the daily Ichimoku cloud.
