The pair started the session on a slightly weaker note with dollar-yen witnessed a gap higher at the open this morning, from Y104.24 to Y104.58. Dealers said the early demand triggered more buys from Japanese banks from around Y104.50/55. A positive open in Japanese stocks then saw the pair extend the initial high through last night’s Y104.59 high to Y104.85, its highest since last Thursday’s Y104.93. The move also prompted bulls to eye a test of Y105.00, where exporter offers were believed to be sitting, and stops above. A disappointing reading of HSBC flash China PMI however put a dampener on things, with yen crosses retreating sharply, triggered by aussie-yen’s drop. Euro-yen followed the move, falling from an early high of Y141.94 to Y141.23.Dollar-yen was also dragged lower and it reversed direction back below Y104.50. The pair was last at Y104.33 while the cross was at Y141.34. Y103.77 support remains key for dollar-yen and with stops noted below a close below this level would shift the focus back to retests of the Y102.50-85 region. Ahead, 15,950 is key for the March Nikkei futures with a close above to provide significant support for dollar-yen
