Dollar Pares Gain as Japanese Yen Surges to High Since November
- Yen up against all G-10; stop-loss USD sell orders tripped
- Dollar-yen breach of 112.00 may open move toward 110.00
Yen Signals More Pain for Dollar Bulls
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The Japanese yen rose versus all of its G-10 peers, driving dollar-yen to its lowest level since Nov. 29 as traders unwound stale yen short positions across several currency pairs, notably against the Canadian dollar and the Australian dollar.
The yen strengthened through 112.00 per dollar after an earlier approach to the level was met with a rebound in the greenback, the gyrations coming as the dollar rose against most other G-10 peers. FX traders are trying to adjust positioning while balancing a Fed that is intent on hiking rates two or three times this year with a new administration which has expressed some misgivings about dollar strength.