The yen strengthened further, with USD/JPY falling during London hours to the low ¥156 range from just below ¥159, the Tokyo market high. EUR/JPY and GBP/JPY also set fresh lows, as moves driving the yen market broadened.
The yen strengthened further in London trading, with USD/JPY falling to the low ¥156 range during London hours. Rather than a sharp move from just below ¥159 in Tokyo trading, the pair has been steadily moving lower. Concern over intervention and expectations of pressure on the Bank of Japan to raise interest rates were among the factors in focus.
USD/JPY fell from a high of around ¥158.97 in early Tokyo trading to the low ¥156 range during London hours. Reports concerning the likelihood of a BOJ rate hike at this month's meeting and the flexibility of its pace prompted both yen-buying and yen-selling reactions.
The yen strengthened broadly across the cross-yen pairs, with EUR/JPY falling to the low ¥181 range and GBP/JPY to the high ¥210 range, both setting fresh lows. Dollar selling had a slight upper hand in dollar pairs, but no major moves were seen.
Although oil prices continued to rise, the reaction in the form of dollar buying was limited. Market participants are increasingly expecting the yen's appreciation to continue, while movements in risk reversals and hedging ratios are also drawing attention.