USD/JPY Analysis

USD/JPY opened in Sydney at Y121.24, after European and US markets witnessed a Y120.66 to Y121.42 range, profit-taking on long US dollar positions largely offset by demand for euro-yen, according to traders. Economic data has been rather sparse for the Asian session today and early direction was influenced by regional equity markets. The US dollar traded with a broadly firmer tone this morning and dollar-yen bounced off early low near Y121.30 after Japanese stocks also started the day with healthy gains. Dollar-yen reached Y121.41 and after a small pullback, saw another rally to a Y121.49 high. The main drag for the pair has actually come from euro-yen, which has been trading softer since its open at Y128.99, which was also the high for the morning so far. The cross retreated early but saw a brief recovery back to that peak before it retreated to a low of Y128.76. It last traded at Y128.77. Dollar-yen meanwhile last traded at Y121.47 as the Nikkei 225 hit fresh 14-year highs. Offers are noted just above the initial high from Y121.50, hourly resistance then at Y121.52, with further sellers then noted from Y121.80.