USD/JPY Analysis

JPY dipped to session low of Y102.92 after starting the week at Y103.02 in Asia morning, dollar bulls brought it to session high of Y103.23 before Japan’s 3Q final GDP & trade data was released and it drifted down to session low of Y102.89 in late Asia morning before rebounding to Y102.99 last. Dollar bulls cleared offers at Y102.95/00, breaching NY’s high of Y102.97 but further offers at Y103.20/25 capped the pair’s advance and bulls took some profits albeit weaker-than-expected data. Euro-yen tracked dollar-yen’s movement as it edged up to hit fresh 5-year high/session high of Y141.55 before retreating to session low of Y140.69 and rebounds to Y141.15 last. Dollar-yen’s strength built on last Friday’s strong NFP numbers and strong rally in Japanese stocks as it gapped higher on Asia opening, the Nikkei rising 1.93% last. Theyen crosses remain biddish amid stronger dollar-yen and higher equities. Strong China trade balance & exports boosted aussie and Asian stocks as well, lifting yen crosses higher.