In the Tokyo market today, USD/JPY is expected to search for direction amid month-end and quarter-end supply-demand factors and ahead of key event releases. A wait-and-see mood is strengthening ahead of the release of economic indicators such as the US employment report and PCE deflator.
In today's Tokyo foreign exchange market, USD/JPY falls on the final trading day of September and the second quarter, making it necessary to watch for position adjustments driven by actual demand and fund flows associated with settlements around the Tokyo fixing rate. Although firm dollar-buying and yen-selling pressure remains, supported by US interest rate levels, moves to push higher are notably cautious. Concern over intervention is a factor limiting upside.
In the oil market, geopolitical risks surrounding the situation in the Middle East have eased, and oil prices are trending lower, although sudden news developments still warrant attention.
In overseas markets, a series of indicators due during New York hours today, including the September ADP National Employment Report and August PCE deflator, is scheduled to provide clues on US monetary policy and economic conditions. A wait-and-see mood may intensify from the Tokyo session through the London session.
For AUD/JPY, the release of August Australian CPI is the main focus, while uncertainty over the outlook for further RBA rate hikes is also having an impact.