USD/JPY opened in Sydney at Y119.74 this morning after European and US markets were held in a narrow Y119.38 to Y119.91 range and followed up with a decline to Y119.66 in early dealings. There weren’t a lot of major data releases due today on the domestic front and market players looked to the equity markets for clues. Dollar-yen traded off Y119.60 and up to Y119.69 at the start of the local stock market but was subsequently pressured lower as Japanese stocks traded in negative territory. The pair fell to a low of Y119.50 around mid-morning as Japanese stocks chalked up losses over 1% on the day. The pair bounced off that low to trade near Y119.74 again in the afternoon. Traders are reporting light stops below Y119.35 with support then noted at Y119.26, marking the 61.8% retracement of the Y118.65 to Y120.27 rise, while up top, resistance lies at Y119.80 (50-HMA). Euro-yen meanwhile was last at Y133.66, slightly lower than where it had started the session, at Y133.82. The cross traded in a Y133.61 to Y133.85 range through the morning today.
