JPY was under pressure through the morning today after dollar-yen opened at Y103.76 and euro-yen at Y137.58. Dollar-yen traded near the day’s Y103.67 low in early dealings and then edged back up to Y103.78 after Japanese stocks opened. It marked an early high of Y103.81 soon after it opened at Y103.76 this morning, almost matching last night’s US high of Y103.85 but was initially capped by rumored strong selling interest in the Y103.85. But dollar-yen continued to rise as the dollar extended its broad gains fromovernight while euro-yen also climbed to Y137.64 from the earlier low of Y137.47. Dollar-yen was holding at Y103.91 as the HSBC China flash manufacturing PMI was released, which triggered a further broad rise in the US currency and dollar-yen was carried up to a Y103.98 high. The pair ran into offers from Y104.00 up to Y104.20 and drifted off the high as euro-yen also retreated on risk aversion. Dollar-yen slipped to Y103.84 and was last at Y103.86 while the cross was at Y137.58. Initial support is now noted in the Y102.90-103.11 region.
