A subdued overnight session for JPY pairs was quickly overcome as the Asian session got underway, with dollar-yen initially catching a moderate bid tone after the US hours, from around Y100.15/20, which carried the pair up from its open near Y100.00. Mild euro-yen dips sapped some of the dollar-yen strength, with added supply from Japanese exporters kicking in at Y100.30. Risk appetite continued and the gains picked up pace again as Japanese stocks continued to rise through the morning (the Nikkei 225 up 1.25% at the morning close), this fueled a recovery in euro-yen with spec accounts reported buyers of dollar-yen on the dip. The dollar extended gains to Y100.47, while the cross topped out at Y129.63 before both pairs eased to Y100.30 and Y129.39 as momentum faded. With the US back from their holiday and payrolls data due ahead, traders note of sell orders from Japanese exporters from Y100.50 up to Y101.00, the latter mark also believed to contain a large option cut due to roll off at the NY cut.
