The JPY saw a rough session this morning as broad dollar strength drove it down to its lowest level since July 2007. Dollar-yen opened at Y121.15 after trading a high of Y121.41 last night in the US. The pair inched higher from the start, clearing the overnight high to a high of Y121.62 a few minutes after a speech from Dallas Fed’s Richard Fisher were published. Fisher’s remarks echoed many of the comments he made to MNI in an interview a week ago and dollar-yen gains tapered off soon after with the pair then drifting back to Y121.41. Another rebound was then seen after that with dollar-yen then climbing to Y121.76. The broader US dollar gains continued in the early afternoon, giving dollar-yen another burst of strength, taking it up to a Y122.03 high, its highest since Juyl 2007, after Japanese exporter and option barrier interest at Y122.00 were absorbed. It then eased slightly to last trade at Y121.75. Resistance is noted at Y122.43 (Sept 20 2007 high) ahead of further barrier interest at Y122.50 and a Y123.00 option expiry today. Euro-yen meanwhile traded a Y131.37 to Y131.87 range through the Asian session today and last traded at Y131.43, vs the US close of Y131.47 overnight.
