The pair started H2 of the Japanese fiscal year at Y109.65 and early attention was focused on the release of the BOJ’s quarterly Tankan survey of business sentiment. Dollar-yen was holding around Y109.70 just before the Tankan results were out and it subsequently slipped to around Y109.60 after the release. The Tankan readings were generally better-than-expected but dollar-yen began to turn higher after that as the dollar strengthened. The pair edged through last night’s Y109.84 but was initially hampered by sellers at Y110.00. Still, buyers gnawed away at the offers and eventually pushed dollar-yen through Y110.00 for Y110.06 initially, and then a high of Y110.09, its highest sinceAug. 25, 2008. The gains stalled after that as waves of profit-taking interest followed, and dollar-yen eased to the Y109.90 zone after that. It was last at Y109.89, and faces strong offers from around Y110.10/12, with stops then expected if Y110.20 breaks. Euro-yen meanwhile, opened at Y138.49 this morning and traded up to Y138.56 in early dealings. Gains extended to Y138.80 around mid-morning, before the cross retreated again to last trade at Y138.64.
