The dollar pushed the range low on Thursday but recovered after media outlets reported a proposed revision in Japan's public pension fund's strategy which would boost equity markets and undermine the Japanese currency.
Sources told one major outlet the Government Pension Investment Fund (GPIF) was considering a more flexible approach to allocations which could let investment in domestic stocks grow in rallying markets. But the rally didn't last long which only shows how nervous investors are. The longer range trading between 100.50 and 103.50 yen holds, the tougher it will be to break out. So far, large players seem to be holding. Some USD4 billion in yen traded on one major platform on Thursday which was higher by about 40 percent than the historical daily average but still far below the USD7 billion last week on the day the Nikkei plunged. Expect more volatility and watch for key players like the BOJ to announce initiatives or talk that corporates are reversing and betting against a yen at 105.