The pair ran up to a Y103.15 high last night in the US in the wake of the US GDP data and the FOMC decision, but retreated into the close before starting this morning at Y102.78. It witnessed another brief move up to Y102.89 earlier but the failure to break higher then gave way to consolidation at lower levels. Euro-yen meanwhile opened at Y137.71 after a US session high of Y137.87 last night. The cross also marked early gains to Y137.80 but turned back down as risk sentiment faded on Argentina’s debt woes. Dollar-yen also retreated to Y102.77 and briefly recovered to Y102.83 as yen crosses also staged a small bounce before continuing to move lower. Dollar-yen eventually sank to a Y102.74 low while euro-yen traded down to Y137.67. Dollar-yen was last at Y102.76 and is seen needing another leg up through the overnight highs before it can stage a move for Y103.20 stops. For now, support lies at last night’s Y102.20 low, which comes in near the 200-day and 100-day moving averages, at Y102.16 and Y102.06, respectively.
