The pair opened at Y101.52 and then edged higher in early dealings, trading up to, but not breaking above, last night’s Y101.59 US high. The move gathered pace after Japanese stocks opened, with dollar-yen breaking higher to Y101.64 before it backed away. It staged another move higher around mid-morning, this time reaching Y101.67 before easing again after encountering offers above the initial high, at Y101.70, and the 200-day moving average coming in at Y101.75, ahead of larger sellers at Y101.80. Dollar-yen traded back to Y101.60 in the late morning and was last at Y101.59, almost flat from where it had started the day. The Y101.39-50 region is key support for dollar-yen on Wednesday with support having developed at the Y101.50 level in afternoon NYtrading. Small stops are seen below Y101.50 from traders looking for dollar-yen to receive a leg up from the Nikkei’s gains today with more stops noted below Y101.30. Bids meanwhile are seen just below the US low of Y101.45, from Y101.40.
