The pair hit selling pressure from the start of the day, with most players citing a likely victory for PM Abe’s ruling coalition during Sunday’s upper house elections for the move. Dollar-yen started around Y100.40 this morning and was held between that and Y100.60 in initial trades. The pair extended gains to Y100.87 as Japanese stocks rose also and euro-yen followed suit as it broke above Y132.00 and was carried higher by stop-losses to a high of Y132.10, its highest since May 22. But dollar-yen turned abruptly lower around mid-morning, and quickly retraced all of the morning gains to Y100.20 as stock markets also turned sharply lower and the futures market took a hit. Euro-yen also pulled back to around Y131.50 at the same time. Dollar-yen and euro-yen briefly stabilized before extending losses again in the afternoon, with the former eventually sliding below Y100 for a Y99.81 low while the cross fell to Y131.22.
