The pair started with modest losess this morning as dollar-yen opened at Y101.76 and edged up in the early hours to Y101.90, as euro-yen also rose to Y141.87 after it opened at Y141.68 today. Dealers said Japanese banks were believed to be the main buyers of yen pairs this morning, with the moves picking up speed just as Japanese stocks also started in positive territory. Dollar-yen topped out at Y101.95 while the cross peaked at Y141.96 after the Nikkei 225 opened but turned back after that in the face of sellingmentioned from above the initial highs. Dollar-yen retreated to a Y101.69 low as yen crosses were sold down following the PBOC’s yuan fix this morning, while euro-yen pulled back to a low of Y141.64. Market sentiment calmed a bit later in the morning, allowing dollar-yen to recover to last trade at Y101.85 while the cross stood at Y141.89. Key dollar-yen resistance remains in the Y102.12-35 region including the 21-day and 100-day moving averages. A close above Y102.35 is needed to end bearish hopes for the time being and see focus shift back to the Y103.80-85 region.
