JPY started in Asia with minor gains after dollar-yen again failed to make any kind of meaningful attempt at breaking through Y102.00 where option-related offers are believed to have built up. Dollar-yen opened at Y101.27 while euro-yen opened at Y137.46. Early expectations of a weak opening for Japanese stocks pushed dollar-yen down to a Y101.18 low while euro-yen was also pressured to Y137.29. Dollar-yen then rebounded to Y101.35 and initially struggled to clear rumored offers stacked above Y101.50. It held near there even after comments from BOJ officials, Takahide Kiuchi and Sayuri Shirai, who both expressed doubts Japan’s 2% inflation target. Late in the morning however, euro-yen broke higher to Y138.03 as the euro caught a bid tone, and that helped dollar-yen push through Y101.50. Dollar-yen eventually traded a high of Y101.60 and was last at Y101.56 while the cross was trading at Y138.05, after a high ofY138.09. On the downside, dollar-yen stops are noted below Y100.90 support with a break below likely to risk a deeper correction that targets Y99.10. While that Y100.90 support remains in play, further oscillation around the rising 21-day upper Bollinger band (Y101.71) is expected to continue.
