USD/JPY opened in Asia at Y120.12 this morning, at the high end of the Y119.50 to Y120.17 seen yesterday, as the yen weakened on higher US Treasury yields and higher equity markets. The pair continued to rise in early dealings today but initially struggled to clear Y120.20 on talk of offers there from Japanese names. Dollar-yen continued to edge higher and eventually broke through Y120.20 but only got as far as Y120.27 before it turned back. Dealers noted supply supply from option accounts and Japanese exporters between Y120.40 to Y120.50 providing the selling pressure. Morning Japanese data were limited to January preliminary wages which had barely any impact. Toward the late morning, risk appetite faded further ahead of the RBA decision and as Japanese stocks also fell, coupled with reported remarks from PM adviser Honda on the dollar’s rise vs the yen, the pair sank through Y120.00 and then below Y119.80 support for a new session low of Y119.69. Dollar-yen last traded at Y119.71, with fresh demand then reported down at Y119.50, the region of yesterday’s session low, with the 5-day moving average also coming in near there at Y119.56, with stop then noted below Y119.50.
