JPY opened at Y102.51 against the dollar while euro-yen opened at Y139.30, after a choppy overnight session which saw the yen reverse some of its recent losses. Dollar-yen slipped early to Y102.28 and then rebounded as the cross also bounced off Y139.30 despite Japanese stocks opening lower. Dollar-yen continued to extend its gains to Y102.67 amid talk of demand from below Y102.00 from reserve managers, while euro-yen traded a Y139.50 high. But continued losses in Japanese stocks took the wind out of dollar-yen’s sails and the pair then dropped sharply back to a Y102.24 low, before bids then came in to support. Euro-yen also pulled back sharply to Y138.94 but recovered back toward the high soon after. Dollar-yen was last at Y102.57 while euro-yen was at Y139.40. Talk of dollar-yen bids from Y102.20 down to Y102.00 and possiblyextending to Y101.95, have been making the rounds in the market while there’s also been talk of large sell-stops should Y101.90 give way. A close below Y101.90 then sees immediate focus shift lower to retests of the Y100.45-00 region with the 21-day moving average noted at Y100.69
