The JPY ran into further losses this morning vs the US dollar despite the closure of Japanese markets due to a public holiday there. Dollar-yen started at Y112.71 after seeing a mild gap up from the US close of Y112.32 last Friday and above that session’s Y11.249 high seen after the announcements about the BOJ’s additional easing and the GPIF’s asset allocation. Dollar-yen continued to march higher in early dealings and briefly traded a high of Y113.00 for the first time since Dec 2007. The move however stalled on reported sellers linked to an option expiry there. Dollar-yen retraced part of the morning’s moves, sliding to a Y112.65 low within the first few hours of the day. There’s been little recovery off that low without Japanese market players to provide support, with the pair last at Y112.70. Friday’s move has also seen layers of support develop on the hourlies with a close below Y111.89 likely to ease bullish pressure a little. Sell-stops meanwhile are noted below Y111.80 and Y111.00 today.
