A day in the spotlight for the JPY this morning after last night’s holiday thinned session due to US Labor Day holiday. Dollar-yen opened at Y104.35 and encountered muted early dealings in a Y104.30/36 range. Japanese stocks opened slightly higher and dollar-yen began to edge higher soon after. The pair initially ran into rumored offers at Y104.40 but Japanese banks persisted, chipping away at those sell orders. Y104.40 gave way and dollar-yen then encountered US banks selling ahead of a Y104.50 barrier. Dollar-yen’s gains continued regardless and momentum picked up around mid-morning and as the pair approached Y104.50. Dollar-yen broke through Y104.50 and set off stops above that, also triggering a broader US dollar rally elsewhere. Dollar-yen traded a high of Y104.79 initially and then extended that through Y104.80 in the late morning/early afternoon, peaking at Y104.86 so far. There are offers noted just ahead of the current Y104.82 level, from Y104.85/90 and up to Y105.00.
