The pair opened at Y117.28 this morning and early dealings were relatively tame with the pair holding a Y117.18/33 range. The ECB news on Greek bonds dampened risk sentiment and supported demand for the yen but a mixed start to Japanese stocks provided little direction. Dollar-yen got up to a Y117.35 high initially on fixing-related demand and as Japanese accounts bought up aussie-yen off the lows. Dollar-yen retreated after the fixing as Japanese stocks also declined, hitting Y117.11 before another bounce, which again ran out of steam. Dollar-yen saw another pullback to a low of Y117.02 where demand from Japanese importers and option names kicked in and boosted the pair back up toward the earlier peaks. The pair last traded at Y117.29. In yen crosses, aussie-yen opened in Sydney at Y90.90, down from yesterday’s high at Y92.35. It traded up to a Y91.22 and then pulled back to Y90.75 lows before recovering again, with Japanese accounts the noted buyers this morning. Immediate support is now noted at Y90.50, which marks the 61.8% Fibonacci retracement of the Y89.35 to Y92.35 rise.
