The yen has continued to strengthen against the dollar to Y126.37 on reported comments by a senior Japanese MOF official who said Japan has no intention to drive the yen artificially lower and talk that an option barrier was triggered at Y126.75. Earlier the pair slipped from Y127.85 to Y127.10 on repatriation flows and rumours that Moody's may not downgrade Japan's sovereign ratings. Euro-yen as slipped from Y116.50 to Y115.50, said to be a line-in-the-sand for the authorities. The euro is off its highs at $0.9155 after an early move to test offers from the $0.9160 level. //MarketNews