The pair opened at Y118.76 this morning after it marked a high of Y118.78 during Friday’s US trading session. The US dollar caught a bid tone early in the day as risk appetite worsened particularly on worries about prices of oil and commodities and the potential for that to spread to other asset classes. The gains were however initially tempered by rumored option-related sellers at Y119.00 and as yen crosses weakened on risk averse dealings. Reflecting that, euro-yen fell to a Y147.75 low soon after it had opened at Y147.79. The cross traded back down again a few minutes before the start of Japanese stocks but rebounded as dollar-yen gained. Japanese Q3 capex data helped dollar-yen and yen crosses higher as Japanese stocks also opened with small gains. The latter broke above those Y119.00 offers and traded a high of Y119.04 but then turned back again on profit-taking. Dollar-yen continued to hold below Y119.00 through the rest of the morning and was last at Y118.87 while the cross traded at Y148.03. Small dollar-yen stops have accumulated below the layers of support that have developed in the Y117.68-118.50 region with decent sized stops noted below Y117.00
