The lower oil prices will offer some support to the dollar and yen, although the prospects for a sustained decline in energy prices appears low. Persistent caution over the Japanese economy is likely to be offset by underlying US vulnerability. Speculation over a wider Chinese yuan trading band will also tend to underpin the yen. There will be tough dollar resistance above 109.5 and the net risks suggest that the dollar will weaken to near 108.0. The dollar traded in narrow ranges against the yen during Monday with strong support at the 109.0 level, but little enthusiasm for pushing the US currency above the 109.5 ... (full story)