Release of weaker than forecast US ISM data Monday provided the catalyst for triggering the move below Y100.00, in turn exposing the large stops through Y99.90-80 which provided the weight to take rate to extended lows of Y98.86. The ISM reading seen putting back thoughts of Fed tapering, and in turn caught the market over long dollars. However, the dip attracted decent demand and allowed rate to close Monday trade around Y99.48. This recovery continued into early Asia as rate pushed on to Y99.86, taking its lead from a positive Wall St close and a wire report suggesting the Japanese government will urge public pension funds to increase investment in equities and overseas assets as part of a growth strategy. However, as has been seen in recent sessions activity in the Nikkei provides the main lead, opening in the red before recovering into positive territory before dropping back again which took dollar-yen down to Y99.33 before it bounced with the Nikkei as the index again turned positive, taking rate to an extended session high of Y99.88. Resistance seen into Y100.00 with stops placed on a break of Y100.05. Stronger offers Y100.30-50, more stops above. Support Y99.10-98.90, stops Y98.80/70.
