The weekend G7 meeting concluded without any aggressive communication, reaffirming their commitment to refrain from deliberately weaken currencies via monetary policy without highlighting recent actions by Japan, acted to weaken the yen into early Asian trade, dollar-yen marked up from its NY Friday close of Y101.62 (after rate had seen session highs of Y101.985) to bring pressure to bear on the well reported option barrier level at Y102.00. The rate managed to trade at Y102.05, dipped to Y101.75 before making another run higher, extending on to Y102.15 into the Tokyo open where the local market met the rise with decent offers. Talk has suggested option barrier interest at Y102.25, which has drawn decent sell interest into the Y102.20 level, while others note offers in euro-yen at 132.40 as also aiding the resistance. Rate slipped back to spend the balance of the session between Y101.80/95, before fund sales into early Europe extended the corrective pullback to Y101.60. Recovery efforts have been shallow, touching Y101.75 before extending lows to Y101.58. Bids reported into Y101.50 ahead of Y101.25/20 and Y101.00. Resistance remains ahead of barrier interest at Y102.25, with larger barrier interest noted at Y102.50 and Y103.00.
