JPY marked small gains this morning in Asia, thanks to the dollar’s broad declines following last night’s disappointing GDP reading. Dollar-yen opened at Y101.87 after a drop to a Y101.62 low during the US session last night while euro-yen started at Y138.83 after last night’s low of Y138.38. Dollar-yen resumed its losses almost from the start of the session today, hitting Y101.78 in early dealings. Dollar-yen was pulled down further as Japanese stocks started the day mixed, slipping through Y101.75 for a Y101.69low and dragging euro-yen down with it. The cross fell from Y138.85 to a low of Y138.63 but euro-dollar’s gain managed to spare the cross from further losses. Dollar-yen also took back some ground late in the morning ahead of tomorrow’s Japanese CPI release, and was last at Y101.74 while euro-yen was at Y138.71. The downside still looks like the path of least resistance for dollar-yen with bearish focus dominating while Y102.35 caps. Stops are noted above Y102.00 & Y102.40 and below Y101.50 and Y101.30.
