The pair started the morning at Y114.05 today after another strong rally through Y114.00 option barrier and then to a Y114.22 high last night in the US, its highest since Dec. 2007. The US dollar however encountered early selling pressure which pushed it back below Y114.00 in the opening few hours, and has since failed to regain a foothold above Y114.00. Dollar-yen slipped to Y113.74 ahead of the re-opening of Japanese stocks after a Monday holiday, and it found minor support as the Nikkei 225 started higher. Losses resumed after that though, with dollar-yen slipping to Y113.52 and then extending the low through the US low of Y113.47, to hit Y113.39. A mild bounce followed but this was easily capped at Y113.71 and dollar-yen then drifted back down as a rising aussie-dollar put the US currency under pressure in the minutes that followed the RBA decision. Dollar-yen was last at Y113.59. In euro-yen, the cross opened at Y142.35 this morning after peaking at Y142.56 during Monday trade on the yen weakness post-BOJ. The cross then retreated through the early half of the morning to a low of Y141.83 before rebounding to Y142.32 toward the early afternoon. It was last at Y142.19.
