The pair opened the Asian session at Y116.41 after a NY trading range of Y115.56-117.60. Euro-yen started at Y145.64 after a choppy NY range of Y144.96 to Y147.03. Another volatile Asian session after release of Japan trade deficit and a collapse in aussie to fresh low since Jun 2010 sent the market scrambling for dollars. The pairs drifted to session lows of Y116.30 & Y145.52 in early trade before surging to Y116.80 & Y145.99 ahead of Japan trade data, the rates kneejerk lower to Y116.57 & Y145.84 before spiking to fresh high of Y117.08 & Y146.42 but supply eased the rates to Y116.45 & Y145.74. Despite trade deficit narrowing to Y925bn from previous of Y985bn, exports slowed to +4.9 from previous of +9.6%. Stops were triggered in aussie with good buying interest in the euro crosses and dollar-yen was lifted to fresh Asian high of Y117.12 while euro-yen touched Y146.27 and ease to Y117.07 & Y146.21 last. Dollar-yen option expiry due Wednesday reported at Y116.50 ($1.65b) with demand noted at Y116.05/00 and reported offers at Y117.50. Early demand lifted offers at Y147.20/25 easily, with further supply at Y146.50 & Y147.00 and demand reported at YY145.55/50 and Y145.25/20
