The pair traded between Y102.02 and Y102.67 in the US last night, and started this morning at Y102.24. With most regional markets closed for Labour Day holidays and with Japan also in the middle of Golden Week, trade activity was largely muted. Dollar-yen got a mild lift after Japanese stock markets opened higher but the gains were limited, with dollar-yen reaching a high of Y102.32. Markets caught a slight whiff of risk-off after China’s CFLP PMI came in as expected at 50.4 but fell short of more bullish expectations, while details within the report were not overly encouraging was well. Dollar-yen followed yen crosses lower, touching a low of Y102.13 before then rebounding toward the end of the morning, as Japanese stocks also stayed firm. Dollar-yen was last at Y102.29. Looking ahead, a close above Tuesday’s Y102.78 high wouldshift the focus higher whereas a close below Y101.86 to see focus shift lower to the Y100.75-101.32 region.
