Another day of losses for the JPY with the dollar edging closer to the Y120.00 mark vs. the yen, after it opened at Y119.80. Early demand was seen from Japanese accounts with dollar-yen then pushing through last night’s Y119.87 US session high to trade at Y119.91 just after Japanese stock markets opened higher. Reported sellers at the psychologically important Y120.00 mark capped the pair’s moves, with these said to be related to a large option expiry today. Dollar-yen quickly retraced back to Y119.74 lows and was held back from any further attempts to better the initial highs after the Australian dollar rallied and put the US currency under pressure. Dollar-yen witnessed a fresh leg higher in the late morning as the aussie eased again, with dollar-yen then hitting a high of Y119.94. It last traded at Y119.92. Dealers expect stops to get hit if Y120.00 gives way, while further offers are noted at Y120.50 and then toward Y121.00.
