The pair opened at Y115.73 this morning in Asia, just off a high of Y115.83 traded during the US hours last night. Early dealings were subdued although the pair managed to inch up through the US high to Y115.88. The gains then intensified dramatically after Japanese stocks opened higher, and after remarks from Japanese officials about the widely reported sales tax hike delay and the likelihood of Japanese PM Abe calling for snap elections next week. Dollar-yen broke through Y116.00 and then took aim at Y116.11, the previous high traded on Nov. 11. The pair punched through that high and then set its sights on rumored stops above Y116.20. The move however stalled just before that and the market then offloaded their long positions. The pair then almost completely reversed the morning moves as Japanese stock retreated, with dollar-yen sliding back toward Y115.75 quickly after that. Another late recovery was seen when the euro and sterling fell against the dollar, lifting dollar-yen back up to last trade at Y116.03.
