JPY recovered from last night’s Y103.54 US session low and started in Asia at Y104.21 this morning. Early trade saw dollar-yen slip to Y104.09 low despite a positive start to the Japanese stock market session. The move lower ran into demand from Japanese importers cited between Y103.80 and Y103.50, which then triggered a rebound, in line with the broader US dollar recovery. The pair rose to around Y104.20/30 before offers ahead from Y104.25/30 and Y104.50 put a lid on the pair. It extended the highs through last night’s Y104.29 high toward Y104.50 since the late morning, peaking at Y104.48. Further breaks higher would then see scope for a move back toward last Friday’spre-payroll peaks near Y105.34, before the five-year plus highs of Y105.44, traded on Jan. 2. Initial support is now noted at the somewhat pivotal Y103.77 level. Euro-yen followed dollar-yen up to the early high of Y142.62 after it opened at Y142.56 this morning. The cross however failed to hold the initial gains, as the euro was pinned lower amid the broader US dollar strength. Euro-yen went to a Y142.25 low and was last traded at Y142.40.
