* Traders cite talk of yen-buying by Japanese exporters
* Profit-talking also weighs on dlr/yen, stops add to
* Dollar/yen resistance at 100 yen still formidable
* No new policy initiatives expected from BOJ meeting
* Pound near two-month high after UK GDP
By Masayuki Kitano and Hideyuki Sano
SINGAPORE/TOKYO, April 26 The dollar fell versus
the yen on Friday, pulling away from a four-year high struck
earlier this month, with traders citing profit-taking and
yen-buying by Japanese exporters as currency markets turned
their attention to the outcome of the Bank of Japan policy
Japanese exporters apparently sold the dollar ahead of their
"Golden Week" holidays next week, said a trader for a Japanese
bank in Singapore, adding that they appeared more active than
"There is talk that (yen-buying) needs from Japanese
exporters have been spotted all over the place," he said.
The dollar eased 0.3 percent to 98.94 yen, edging
away from a four-year high of 99.95 yen tapped earlier in April
after the Bank of Japan unveiled its drastic monetary stimulus.
A Tokyo-based trader for a European bank said Japanese
exporters were also said to have sold the euro versus the yen.
The euro sagged 0.2 percent to 128.96 yen.
Other traders cited profit-taking in the dollar, which has
gained roughly 14 percent versus the yen this year, as well as
stop-loss selling of the greenback.
While the market is focused on a Bank of Japan policy
meeting on Friday, most players doubt it will provide fresh
catalysts for the yen to weaken further.
No new policy initiatives are likely from the BOJ after it
unveiled a sweeping two-year bond buying scheme at its previous
meeting on April 4. It is expected to project inflation to rise
to its targeted two percent in two years in an economic outlook
"The BOJ's easing will continue for two years but that
doesn't necessary mean the yen will always weaken in the next
two years," said Daisuke Uno, chief strategist at Sumitomo
"It's been almost six months since the yen started weakening
so if upcoming U.S. data, such as payrolls data, is weak, the
market's focus could move away from BOJ easing," he said.
The 100 yen threshold has proved to be a formidable
resistance level for the dollar in the past couple of weeks,
with selling emerging from players hedging their barrier option
positions as well as from Japanese exporters when the level was
But some market players think 100 yen will be broken soon,
as some of these barrier options are said to be expiring this
week, and as selling from Japanese exporters could subside
during a string of Japanese holidays next week.
"Some people may try to lift the dollar next week, when the
market will likely be thin," said Bart Wakabayashi, head of
forex at State Street.
Others think the dollar's rally may soon run out of steam,
noting that it has failed to break 100 so far despite a surfeit
of bullish predictions.
The market will be looking to U.S. GDP data later on Friday.
The closely watched U.S. jobs data is due on May 3.
The euro edged up 0.2 percent to $1.3035, inching
away from a near-three-week low of $1.2954 hit on Wednesday.
Growing expectations that the European Central Bank may cut
rates next month to support the euro zone's moribund economy
have kept a lid on the euro, which has retreated since hitting a
high near $1.3200 last week.
The British pound held firm after hitting a two-month high
on Thursday on better-than-expected UK growth data. Sterling
rose 0.2 percent to $1.5458, near Thursday's high of
Britain avoided recession in the first quarter,
wrong-footing some bearish investors, who had expected a weak
number that would push sterling lower. The data watered down
expectations that the Bank of England will add to its
asset-buying program to underpin the economy.