Early trade in New York: Yen hits one-month high

The yen jumped to a one-month high against the dollar on Tuesday after the Bank of Japan refrained from loosening monetary policy further and concerns about the finances of Spain and Italy drove a bid for safety. The yen's gains, however, could be capped by speculation of further monetary stimulus from the BoJ when it issues new forecasts on the economy on April 27.
The dollar hit a low of 80.81 yen, its lowest since early March and last traded at 80.88, down 0.8 percent on the day, according to Reuters data. A break below 80.81 could open a test down to 79.80, Sutton said. The yen also rose to an over one-month peak versus the euro at 105.57. The euro last traded at 105.68, down 1.1 percent, with the shared currency vulnerable to a resurgence of concern over sovereign debt. The euro last traded down 0.3 percent versus the dollar to $1.3066, within sight of a one-month low of $1.3033 hit on Monday. Stop loss selling was reported around $1.3090 and market players cited more stops below $1.3064.