As was reported Friday morning, those that had missed out on the post BOJ reaction rally were indeed awaiting reactive dips to a poor US jobs number release. The weak data initially prompted dollar sales but buyers were waiting between Y95.80/70. This demand bounced rate initially to Y97.26, with custodial buys late in the session cited for taking out barriers at Y97.50 and Y97.75 before it topped out at Y97.83. Rate closed the week at Y97.57, resuming its rally into early Asian dealing. Nikkei report that the BOJ is expected to kick-off its new monetary-easing program by buying a total of Y1.2tln this week, as well as suggesting MUFG is in advanced talks to buy Deutsche Bank’s US property loan arm for Y360bln, provided the fuel to take dollar-yen to Y98.85, before it consolidated this move within an outside range of Y98.30/70 through the balance of the session. Talk of decent offers placed into Y99.00, though option links so far not suggested. However, traders mention that large Y98.00, Y98.25 and Y98.50 strikes are set to roll off at the NY cut and could anchor. Further offers noted into Y100.00 and at the monthly Ichimoku cloud at Y100.19.
EasyForexNews Research Team