USD/JPY started this morning at Y121.45 and then saw a minor dip to Y121.39 in early trade. It recovered after that and went to Y121.61 soon after Japanese stock markets opened. But the gains were not sustained with the pair weighed down by losses in euro-yen after the cross had opened at Y128.10. Euro-yen got up to Y128.27 and then turned sharply lower, dragging dollar-yen down with it. Dollar-yen pulled back to Y121.46 and then made another run higher, this time to a Y121.67 high before it encountered sellers again, rumored to be Japanese exporters and possibly some semi-official accounts from around Y121.80, dealers said. That capped dollar-yen’s moves for the morning and it retraced back to Y121.44 in the afternoon even though Japanese stocks broke to highs not seen since the year 2000. Dollar-yen last trades at Y121.49. On the downside, the 5-day ma comes in below this morning’s Y121.39 low, at Y121.23, with support then noted lower at Y121.15, yesterday’s European session low and the 61.8% mark of Wednesday’s Y120.85 to Y121.63 move. Euro-yen meanwhile retreated all the way back to a session low of Y127.66 and continued with a heavy tone in the early afternoon. It last traded at Y127.72.
