Although dollar-selling emerged during New York hours, USD/JPY remains range-bound around ¥158. It rose to around ¥158.40 during Tokyo hours, but caution remains about breaking above the 200-day moving average.
Although dollar-selling was seen during today's New York trading hours, USD/JPY remains range-bound around ¥158. It briefly rose to around ¥158.40 during Tokyo hours, but the 200-day moving average lies above that level, and the pair has continued to trade below it.
Uncertainty persists, including the decline in French government bonds and French 10-year yields reaching the 5% range, but the impact on the yen remains limited at present. With the outlook for the Middle East situation, crude oil prices and yields uncertain, and next week's U.S. and Japanese policy meetings approaching, many expect trading to remain within a range around ¥158.
Next week's monetary policy meetings will be followed by the 3 November U.S. midterm elections. While the possibility of the Democratic Party regaining control of both chambers of Congress is being discussed, uncertainty remains. The market is not expecting a major change in direction, and many participants intend to monitor trading within the range.
NY cut option expiry is expected to be around ¥158, with levels such as ¥158.00 on the 21st and ¥157.50 on the 22nd indicated.