The pair opened at Y103.39 in Asia and euro-yen started at Y142.18 near session lows of Y103.36 and Y142.14, both edged higher to hit temporary highs of Y103.67 and Y142.52. Talks of buying interest into Tokyo fix and stops above Y103.50 were taken out by Japanese banks which pushed dollar-yen to hit Y103.67 in early morning Asia. The rate pull backed to Y103.43 before renewed buying interest pushed it to Y103.70 which capped the pair briefly before stops were triggered above Y103.75 and it hit a high of Y103.85 subsequently. Japanese banks paid offers at Y103.70 on the platforms ($400 mln) but it capped the pair’s advance and it retreats to Y103.61 but quickly bouncedback up to clear offers at Y103.70/75, triggering stops above Y103.75. Dollar-yen retreats to Y103.73 from Y103.85 but continues to edge higher to hit fresh session high of Y103.87 and retraces to Y103.81 last, euro-yen retreats to Y142.71 last. Dollar-yen now joins euro-yen in touching fresh 5-year highs. Yesterday evening BOJ Governor Haruhiko Kuroda told FT, BOJ will keep its easy monetary policy till inflation hits and stabilises at 2% target and would take more easing measures if prices rises flagged.
