It’s been a thin market for the JPY with markets in Japan closed today for the Autumn Equinox holiday. Dollar-yen opened at Y108.84, just off last night’s Y108.75 low, while euro-yen started at Y139.85. Dollar-yen was initially stuck in a Y108.80/86 range in the opening hours but lost ground further to Y108.70 as Asian markets got underway, amid a lack of supportive demand from Japanese names. Euro-yen held a narrow Y139.78/86 range in early dealings before dropping to a low of Y1139.70. Dollar-yen’s losses extended to Y108.60 and euro-yen to Y139.67 just before the release of the HSBC flash PMI reading. Euro-yen rallied to Y139.79 after the release and then on to a high ofY139.88 as risk assets rebounded on the better-than-expected reading. Broader euro selling then capped euro-yen’s move, and the cross dipped back to last trade at Y139.79. Dollar-yen followed suit and peaked at Y108.88 before backing away a bit to last trade at Y108.77. Bids are said to be still in place at Y108.60/50, before the next layer of support is then seen at Y108.39/32, the FOMC react high and the Sept 18 low.
