JPY traded in narrow ranges through the Asian morning today with dollar-yen securing a toehold above Y98.00 despite the overnight drop to Y97.60 low. Euro-yen also traded in a tight range, and also managed to fend off further losses to the Y131.22 overnight low. Dollar-yen slipped early to Y98.06 from around Y98.20 while the cross went to Y131.53 from around Y131.77. Yen pairs witnessed broad recoveries after that, and dollar-yenrose to Y98.26 while euro-yen traded up to a Y131.80 peak. Risk sentiment improved after the Chinese trade data, keeping yen cross supported near the high but euro-yen eventually turned down again to Y131.55 while dollar-yen was also pulled down to Y98.10 again. Dollar-yen last at Y98.16 while euro-yen was at Y131.62. With the Y130.98 low from Sept 9 seen as key support for the cross, further stop loss selling is expected on a break below. For dollar-yen, a close below the 200-day at Y97.74 would be a significant bearish event is likely to see immediate focus shift to tests of the Y96.55 Oct 7 low. Movements in the Nikkei futures and their impact on risk appetites will be key for dollar-yen today with the market anxiously awaiting tonight’s US employment numbers
