The pair weakened at the start of the session, giving a leg up to dollar-yen and euro-yen minutes after Japanese stock markets opened this morning. Dollar-yen started at Y101.45 and rose to Y101.55, while euro-yen also rose to Y137.41 after opening at Y137.29 amid signs of improved risk sentiment. Dollar-yen extended the high to Y101.65 after Japanese stocks opened higher, while the cross rose to Y137.58. The gains stalled as the rise in Japanese stocks ran out of steam, and led to dollar-yen completely reversing the initial morning gains. Losses then picked up pace with dollar-yen then retreating to a Y101.32 low while euro-yen dropped to Y137.11 before talk of rumored demand from Y101.00 and below contained the downmove. Yen pairs rebounded again in the afternoon as US Treasury yields continued to rise, with dollar-yen then break above the morning low to Y101.67 while the cross also followed suit, rebounding to a Y137.48. Dollar-yen was last at Y101.16 while euro-yen was at Y137.42.Stops are noted below Y100.75 with a break lower to see the key 200-day movingaverage (Y100.11) tested.
