JPY ran into early demand after it started the session around Y102.27 against the dollar and at Y138.95 vs the euro this morning. Dollar-yen was carried up to a Y102.46 high while the cross edged up to Y139.21 amid rumored demand from Japanese accounts early in the day. Dealers attributed part of the buying to Japanese Gotobi day demand. But dollar-yen ran into selling pressure soon after Japanese stocks opened lower, with offers appearing from below Y102.50. Euro-yen also pulled back off the highs but wasgenerally supported above Y139.00 through the morning. In the early afternoon, dollar-yen was trading at Y102.33 while the cross was at Y139.17. Immediate dollar-yen support is seen at the region of last night’s Y101.82 US session low, minor demand spotted at Y101.80, with stops then seen on break below Y101.67. On top, the Y102.83 level that previously supported on the hourly time frame has again capped the move higher with stops remaining above this level and more noted above the Y103.38 level. Very overbought daily tech studies combined with CFTC data showing that Yen shorts are at extreme levels are hinting at a deeper correction that is initially targeting a retest of the Y100.98-00 region.
