The majority of yen crosses headed higher last night as USD/JPY made fresh 2014 and 7-year highs. Dollar-yen started this morning just off Y118.00 and then its gains further above the US high of Y118.09 for Y118.26 in early dealings today. Japanese stocks opened higher and dollar-yen stayed near the initial highs but held back from a more determined push higher. Japanese trade data were better-than-expected but the HSBC China flash PMI was a bit disappointing causing some selling in yen crosses. Dollar-yen marginally extended gains to Y118.28 with barrier-defensive offers noted on approach of Y118.50 and the Aug 13/14, 2007 highs of Y118.52/57 coming in above that, although Japanese stocks ended the morning off their best levels. A further push was then seen in the early afternoon with dollar-yen trading a high so far of Y118.55, marking its highest since mid-August 2007. Dollar-yen was last at Y118.42, with further stops then noted in the Y118.75/80 region of the Aug 10,2007 highs
