USD/JPY opened in Sydney this morning at Y118.84, after offshore markets traded a narrow Y118.63 to Y119.07 range. There were no major Japanese data releases this morning and initial direction was gleaned mainly from Japanese stocks, which ended the morning on a slightly firmer footing. Dollar-yen traded in a tight Y118.83/90 range in the opening hours and then rose to a high of Y119.09 as Japanese stock extended their early gains. The pair twice traded that high but struggled to make further ground. It then retraced lower after that as profit-taking set in, slipping back to Y118.90 in the late morning. Euro-yen meanwhile opened at Y135.03 and held a Y135.00/09 range initially before it rose to a Y135.37 high. The cross gains also ran out steam there and it deflated to Y135.16 soon after. Euro-yen last trades at Y135.20 while dollar-yen was at Y118.94. Resistance is seen at Y119.42 (double top 17/18 Feb), above there Y119.60 marks the 61.8% fibo retracement on the Y120.48 to Y118.18 fall. Initial dollar-yen support lies at the 21-day moving average at Y118.63.
