The pair was under pressure in European trade last night and retreated to Y102.00, a level which supported the pair also during the New York session as lower US stocks led to further rounds of selling. Dollar-yen’s bounce off Y102.00 was also limited to Y102.25, with the pair then starting this morning’s session at Y102.17. Dollar-yen traded lower as Japanese stocks then started the session in the red, touching a Y102.12 low before it turned higher again. The dollar recovered again as Japanese stocks pared their initial losses and as the Chinese yuan fell below the fix again. The pair took out small buyorders in the Y102.30/40 region and then took aim at stops above, but only reached as high as Y102.42. Dollar-yen was last at Y102.31 with residual stops believed to still be scattered above the session high, while further up offers at Y102.65/70 are also likely to keep a lid on the pair. Ahead, the downside is likely to hold at Y102.00 with numerous bids spotted still sitting there.
