The pair started out at Y107.19 as Japanese traders returned from their 3-day holiday weekend. The pair then eased from a Y107.24 early high to Y107.09 but recovered a bit as Japanese stocks opened slightly higher. The pair then reversed course as the Nikkei 225 also dropped into the red, with Y107.00 eventually giving way in relatively timid dealings. Dollar-yen traded a low of Y106.93 and then rebounded to Y107.08 a few minutes after, reflecting a broader rebound in yen crosses off their respective lows. Dollar-yen recovered further to Y107.14 in the late morning/early afternoon and was last at Y107.17. Layers of support are noted in the Y106.52-00 region with bears needing a close below Y106.52 to confirm an easing of bullish pressure. Overall a close below the 21-day moving average is needed to end bullish hopes and initially target the Y103.50 level
