The pair opened at Y108.76 this morning and was under some early pressure amid some follow-through interest from last night’s market action which saw the pair hit a low of Y108.53. There was talk of exporter sales due to flows related to the month- and quarter-end and on reports last night that Japan’s health minister Shiozaki was in no rush to submit a bill to reform the GPIF. Dollar-yen slid to a morning low of Y108.48 soon after the release of August CPI data and then spent the next few hours hovering near that low. Reported demand from Y108.40 supported the pair and it then began to retrace higher as talk also circulated of dip-buy demand from Japanese from around Y108.30 down to Y108.00. Dollar-yen’s move higher accelerated after newswire headlines citing Shiozakisaying he has no intention of postponing the GPIF reform bill. Dollar-yen then turned around and blipped up through the opening Y108.76 high and went toward Y108.90. It continued to march higher in the late morning, eventually trading a high of Y109.11, before sellers at Y109.15/20 capped the move so far. Initial support is noted in the Y108.25-45 region today with stops seen below Y108.20 and Y108.25. Topside stops are seen above Y109.50.
