JPY revisited last week’s lows against the dollar but held off from making further 5-year lows against the euro this morning, although flows were generally in favor of further yen weakness. Dollar-yen opened at Y102.51 this morning while euro-yen started at Y Early demand for the Tokyo fix kept dollar-yen supported through the early hours of the session and the pair inched up to Y102.61, almost matching last week’s Y102.62 high, its best since May, and held near Y102,50 as Japanese stocks opened slightly higher.Initial support also came from euro-yen which was carried up to an early Y139.51 high amid talk of demand for euro-denominated bonds. Yen pairs began to give back much of those gains soon after as the euro also failed to make much headway and as dollar-yen then ran into selling from a rumored reserve manager. Dollar-yen fell to a Y102.22 low around mid-morning but managed to regain a few notches back to Y102.40. Euro-yen also backed away from last week’s Y139.71 5-year high and dropped to a Y139.04 low. Dollar-yen was last at Y102.42 while the cross was at Y139.32.
