JPY traded a 6-month low of Y101.92 against the US dollar and slumped to a 4-year low of Y137.99 versus the euro during Monday’s session but started Tuesday’s session off its worst levels. Dollar-yen started at Y101.59 today while the cross opened at Y137.43. There has been talk of large offers defending a Y102.00 barrier and these have successfully kept the pair from any meaningful attempt at a break. Profit-taking interest then took hold, with dollar-yen slipping to Y101.47 in early trades, the market showing little interest in the release of the BOJ minutes. Dollar-yen then extended the initialfalls with a variety of reasons then being thrown up for the move, including this morning’s lower open in Japanese stocks and US banks unwinding positions ahead of the Thanksgiving holiday this week. Dollar-yen weakened to a Y101.33 low but recovered some ground as euro-yen bounced off an early Y137.14 low to a Y137.58 high, thanks to euro-supportive remarks from PBOC governor Zhou Xiaochuan and the ECB’s Noyer. Dollar-yen was last at Y101.44 while euro-yen was at Y137.28. Any dollar-yen break below yesterday’s Y101.14 Asian session low may open up a move for Y101.00 but demand interest atop that may provide support.
