JPY witnessed a quiet session in Asia today with markets in Japan closed today to mark a public holiday. Dollar-yen opened at Y98.76 this morning after a Y98.32 to Y98.86 US range on Friday. Yen flows were largely limited with dollar-yen initially slipping to the day’s lows and then recovering as broader dollar strength provided support. Sellers then continued capped the pair and dollar-yen spent the rest of the morning holding around Y98.75/80. Above the morning’s Y98.84 high, which almost matched Friday’s US session high, buy-stops are noted above the Y99.00 level with a close above needed to see focus ratchet higher to tests of the psychological Y100.00 level. The 21 day upper Bollinger band (Y99.24) is heading gently higher and it shouldbe noted that closes above are a rarity. The pair has recovered from spikes below the 200-DMA (Y97.60) with a close below the 200-DMA needed to shift overall focus back to the Y96.55 Oct 7 low. Euro-yen meanwhile was at Y133.13 in the late morning after a Y132.85 to Y133.35 range. The cross was weighed down by the euro’s losses this morning although moves were somewhat overdone amid the thin liquidity, according to dealers.
