The pair opened at Y101.54 this morning, just off the overnight low of Y101.46, and edged higher in light, early dealings amid an improved risk environment. Dollar-yen jumped to Y101.60 a few minutes after Japanese stocks opened in positive territory, fueling the risk-on theme. The pair held around there for a while and then extended the initial gains to Y101.65. According to dealers, Japanese banks were spotted bidding the pair up starting some time before the Bank of Japan’s policy announcement. But offers noted earlier ahead of Y101.80 have kept the pair from breaking higher, the dealers said. The pair held at Y101.62 as the BOJ made its policy decision, which was as expected. Euro-yen meanwhile started the day at Y138.28 and traded an early high of Y138.36 before extending that to Y138.43. It backed away a bit after the BOJ decision and was last at Y138.33. Dollar-yen meanwhile was last at Y101.59. Offers continue to be seen from Y101.80, with these stacked higher until the Y102.00 mark. On the downside, demand is noted at Y101.20, with small stops noted below, although some traders believe the pair might not get below Y101.45 for now
