The pair opened in Asia at Y120.78, largely unchanged from Friday’s close in New York amd then spent the early hours of the Monday session in a narrow Y120.73 to Y120.90 range. The release of some important local data, including revised Q4 GDP and current account balance was met with indifference from the market as dollar-yen continued to hold near Y120.75. A weak start in Japanese stocks then forced the pair down, to a Y120.61 low before a strong recovery then followed. Euro-yen’s moves also reflected dollar-yen this morning as the cross opened at Y130.85, down from Friday’s close in New York of Y131.00 and initially marked a Y130.81 to Y131.03 range. The cross fell to a low of Y130.71 in early trades before demand linked to a Y130.50 barrier option lifted it back up. The following rebounds lifted euro-yen to a new session high of Y131.29 while dollar-yen also followed up with a move to a Y121.13 high. Euro-yen was last at Y131.22 while dollar-yen last trades at Y121.08. Support is noted at Y120.55 marking the 38.2% fibo retracement of the Y119.37 to Y121.28 rise, resistance lies at Y121.28 (6 Feb high).
