USD/JPY starts in Sydney at Y121.08, after European and US markets were held in a Y120.92 to Y121.48 range, the yen strengthening on continued euro-yen supply. Early Japanese data included domestic corporate goods price index and machinery orders and dollar-yen retreated to an early low of Y120.85 a few minutes before the data were out. The pair saw a small recovery after that but an expected soft opening in Japanese stocks constrained the move. Gains built up momentum as Japanese stocks traded back into positive territory, with dollar-yen trading back up to Y121.28 and then to Y121.41. There was a further move higher in the late morning which saw dollar-yen trade a high of Y121.44. It has since held on near that high, to last trade at Y121.43. Support lies at Y120.62 (March 9 low) while below that, Y120.57 marks the 23.6% fibo retracement of the Y115.84 to Y122.03 rise. Resistance lies at Y122.03 (yesterday’s high). Euro-yen meanwhile has held a largely firmer tone through the morning today after it gapped down to Y129.23 at the open. The cross recovered after that and reached Y129.76 before further extending the gains to a high of Y129.96. It last traded at Y129.64.
