USD/JPY opens in Sydney at Y120.12, European and US markets witnessed a Y119.74 to Y120.40 range, broad based US dollar demand the main theme. Data releases this morning were sparse, with only Japan’s leading economic and coincident indexes due today. Dollar-yen spent the early hours in a Y120.04 to Y120.20 range but was under pressure pre-Tokyo fix market action. The pair then slipped below Y120.00 after the fix and traded a low of Y119.93 thanks to selling from Japanese exporter accounts. Dealers linked that to euro-ye moves as the cross fell from Y132.46 to Y132.25. Dollar-yen remained heavy after that as euro-yen eventually traded a low of Y135.16 but further losses were contained into the early afternoon. Dollar-yen last traded at Y120.00 while the cross was at Y132.35. Traders continue to note Japanese exporter supply between Y120.45 and Y120.55. Initial support is seen at Y119.88 marking the 50% retracement of the Y119.37 to Y120.40 rise.
