Forex Market Update: USD-JPY nears 101.00 as Stock Markets Broadly Higher

Once again, JPY cross buying was the focus in Asia, sending the dollar lower against most currencies except the JPY. U.S. and foreign entities were said to be behind the buying in the wake of the DJIA close above 8,000 on Friday and as Asian stock markets rallied in response. USD-JPY rose to highs of 100.92 but option defense of 101.00 stalled a move higher. EUR-USD gapped from Friday's NY closing levels around 1.3485 to 1.3514 and proceeded to rally to highs of 1.3582 on the back of EUR-JPY gains. Asian stocks were all broadly higher today, with some such as S. Korea and Taiwan testing 6 month highs. Crude futures rose above $53 on increased optimism but gold dropped further, slide $18 as stops were triggered, as risk appetite increased.