JPY started in Asia at Y98.63 while euro-yen opened at Y133.31. Early dealings were subdued, with yen pairs mostly confined within overnight trading ranges ahead of some key events due later today and tomorrow, including the ECB meeting, US GDP data and Friday’s non-farm payrolls data. A positive open in Japanese stocks didn’t do dollar-yen any favors, the pair holding at Y98.60/68, just off earlier Y98.62 lows and near the Y98.58 US session low, although euro-yen fell to an early low of Y133.24. Dollar-yenbriefly rebounded to Y98.75 high and then turned back down and spent the rest of the morning near the lows amid persistent strong selling interest seen around Y99.00. Euro-yen recovered to Y133.42 high and then turned south again. Dollar-yen retreated to a low of Y98.56 and was last at Y98.65 while the cross was at Y133.35 after a Y133.22 low. At current levels, dollar-yen is hovering just above the daily Ichimoku cloud, with the cloud top valued at Y98.46, and the 55-day moving average also, at Y98.45. Failure to retest Monday’s Y98.85 high suggest it is set to continue trading sideways within a Y97.75-99.05 range with the 200-DMA noted at Y97.68 and the 21 day upper Bollinger band at Y99.13.
