The JPY traded with a weak tone through the Asia-Pacific morning today, falling to its weakest in almost a week. Dollar-yen opened at Y117.56 after last night’s US holiday and began to rise from early in the session. It traded up to Y117.84 in early dealings this morning and then saw a minor pullback on talk of exporter offers surrounding the Y118.00 mark but held near Y117.70 after that as the US dollar held a generally bid tone. It resumed rising after that on rumored demand for gotobi day fixing, and extended its initial highs through Y118.00 as Japanese stocks also rose, triggering some decent-sized stops above that. Some dealers pointed to speculation that the BOJ might announce further monetary easing when it announces its policy decision tomorrow behind a further rise in dollar-yen. The pair went up a high of Y118.32 even though most analysts say it is unlikely the BOJ would undertake any further policy easing. Dollar-yen continued to hold up near the highs through the rest of the morning, and last traded at Y118.22. Immediate support is seen at Y116.95/90, with yesterday’s session low coming in at Y116.92 while demand is also noted in the Y116.95/85 region.
