USD/JPY opened in Sydney at Y118.95 toward the lower end of the Y118.77 to Y119.84 seen offshore, the yen gaining ground against the greenback as the market digested the full text of Fed Chair Yellen’s speech. There were no Japanese data to drive the market this morning, and so early direction was led by regional equity markets. The pair traded down to Y118.80 a few minutes after Japanese stock markets opened and then retreated further to Y118.69 as the Nikkei 225 quickly reversed some of its early gains. A generally weaker US dollar tone coupled with thin markets drove dollar-yen lower through the morning, and it slipped to a Y118.63 low before seeing a mild recovery. It last trades at Y118.69. Immediate support lies at Y118.50 (21 DMA), below there Y118.15, marks the 50% fibo retracement of its Y115.82 to Y120.48 rise. Resistance lies at Y119.94, marking the 76.4% fibo of the Y120.49 to Y118.17 fall. Small stops are noted below Y118.70 this morning with decent stops seen below Y118.00.
