A rather muted session for the JPY in a rare change from recent choppy markets. Dollar-yen struck a new 7-year high of Y119.14 during the overnight session after Moody’s lowered Japan’s sovereign credit rating on Monday but pulled back through the session to a Y117.86 US session low. The pair started in Asia at Y118.40 and ran into early minor selling interest, which pushed it down to Y118.22. The pair rebounded after that as the dollar gained strength and helped along also by a positive start in Japanese stocks, which appeared to have brushed off yesterday’s rating announcement. Dollar-yen continued to rise in the morning touching Y118.49 a few minutes before the RBA decision. Dollar-yen marginally extended the high to Y118.50 a few minutes after the RBA statement as aussie-yen also jumped to its session high. Dollar-yen last trades at Y118.44. Above the Y118.50 session high, traders remind of stops atop Y118.60. Stops on the downside are located at below Y117.60 and Y117.20.
