The pair traded weaker this morning, with some follow-through action seen in the wake of reports out last night that Japanese pension funds may invest in higher-yielding stocks. Dollar-yen opened at Y103.64, just off the overnight high of Y103.71 traded during the US hours. It took another stab at Y103.71 in early dealings but failed to break through although the pullback was limited to just Y103.60. A positive open in Japanesestocks gave dollar-yen fresh legs, before yet another failure at Y103.71. Dollar-yen eventually broke higher as euro-yen also saw gains accelerate, and dollar-yen then pushed through the previous high of Y103.77, traded after last month’s non-farm payrolls release. It was carried through rumored Y103.80/85 sellers and traded a high of Y103.95, the highest since Jan. 23 before topping out. Dollar-yen was last at Y103.85 with offers rumored ahead of the morning high from Y104.00, while large stops are also reported above Y104.20. Euro-yen meanwhile last traded at Y143.36. It peaked at Y143.45 today after it opened at Y142.97. That was the highest for the cross rate since March 10.
