The pair opened at Y108.89 this morning while euro-yen started at Y137.46, with the Japanese yen then running into early selling from Tokyo-based accounts. That nudged dollar-yen up through Y109.00 and it then followed up with a move to Y109.13 as the cross also went up to Y137.73. Dollar-yen traded near that high for a while but subsequently encountered selling interest from Japanese retail accounts, which capped the move higher and setting it up for a reversal of the initial gains. The downmove picked up pace as banks also started to offload their dollars, taking profit and consolidating positions ahead of some key events this week, including Friday’s US non-farm payrolls data. Dollar-yen continued to fall through the morning as US Treasury yields alsodeclined, for a session low of Y108.55 in the late morning. Euro-yen followed dollar-yen down and sank to a Y137.30 low. Dollar-yen was last at Y108.75 while euro-yen was last at Y137.62.
