The pair started the day at Y107.84 and edged up to an early high of Y107.99. Failure to break through Y108.00 again led to rounds of unwinding although initial losses were contained at Y107.80. Dollar-yen however dropped sharply to Y107.65 after Japanese stocks opened sharply lower following overnight losses on Wall Street. The move however ran into strong demand interest off the low. That led to talk that the demand was linked to a large option expiry today, cited at Y107.50. Dollar-yen rebounded to Y107.85 and followed up with another similar cycle, falling to Y107.65 and rebounding to Y107.85 soon after. The seesaw action continued with dollar-yen marginally extending the rebound high of Y107.96 before sliding back again. Dollar-yen was last at Y107.78. Euro-yen meanwhile was at Y136.87 after this morning’s Y136.66 to Y137.07 range. The cross started at Y136.85 and fell to the session low soon after the start of Japanese stock markets before it rallied back toward Y137.00.
