The pair started in Asia just under Y99.70 and slipped to a low of Y99.21 before Tokyo markets officially opened. Some dealers said the initial cause was the weak housing data out of the US last night but others believe the move was aimed at flushing out sell-stops below Y99.40. The losses extended after Japanese stocks opened in the red, and dollar-yen slipped to a Y99.15 low thereafter. Euro-yen followed the pair’s moves, with the cross first dipping to Y130.86 after opening near YY131.40 and then falling further again to Y130.77. Dollar-yen managed to climb off the low as the morning progressed and as stock markets rebounded off initial lows, with trade then quieting down and flows drying up for the rest of the morning. Demand interest from below Y99.00, seen at Y98.80 kept the losses contained and dollar-yen then edged back up to Y99.50/60 toward the end of the morning. Currently, more dollar-yen stops are seen should Y99.00 give way but buyers are also in place from around 98.50 and toward Y98.00. Euro-yen also rebounded in the late morning, recovering back to around Y131.48 highs, and was last at Y131.23.
