USD/JPY fluctuated around ¥158, while caution spread against the backdrop of higher oil prices. After the New York market opened, there were periods when the pair moved toward a weaker dollar and stronger yen, but rising oil prices subsequently pushed it back toward a stronger dollar.
In the London market, USD/JPY traded in a ¥157.80-158.18 range. After the New York market opened, dollar selling intensified as US Treasury yields declined, and the pair fell below the Tokyo afternoon low to ¥157.70.
Oil prices then continued to rise, with NY crude oil futures climbing from the low $97s to the upper $101s and Brent crude oil futures reaching the $110s, broadening the move toward a stronger dollar. USD/JPY consequently rose to ¥158.34 before settling around ¥158.00 on position adjustments ahead of the weekend.
EUR/USD traded in a 1.1210-1.1270 range from the Tokyo afternoon session through London. As views on the direction of US Federal Reserve policy fluctuated, the pair again traded sideways in the New York market and rose toward 1.1240 on higher oil prices, but almost all of the day's gains were subsequently erased.
Among other moves, EUR/JPY and GBP/JPY initially attracted buying, but there were also periods when they moved toward a stronger dollar under the influence of higher oil prices. Toward the close, factors supporting both a weaker and a stronger dollar were intermingled.
There is also speculation that the press conference by Ueda, Governor of the Bank of Japan, indicated a positive stance toward additional rate hikes, providing support for yen buying.