In the New York market on the 26th, USD/JPY rose from ¥157.25 to ¥157.64, ending trading at ¥157.51. With the BOJ monetary policy meeting and FOMC ahead this week, trading is expected to remain directionless.
In the New York market on the 26th, USD/JPY rose toward around ¥157.65, although its movement was becoming increasingly limited around the mid-¥157 range. Affected by trends in economic indicators and interest rates in Europe and the US, it ended the day at ¥157.51. Dollar buying against the euro prevailed, while expectations of higher US interest rates pushed up the yen exchange rate.
In the Tokyo market on the 27th, USD/JPY is expected to trade in a subdued range centered around the mid-¥157s. With the BOJ monetary policy meeting and the US FOMC announcement ahead this week, market participants are expected to adopt an increasingly wait-and-see stance while assessing moves in overseas markets.
Among US indicators, the October Dallas Fed Manufacturing Activity Index came in at 13.4, above market expectations and at a high level by historical standards. The Chicago Fed National Activity Index was +0.07, improving from -0.08 the previous month. These figures affected the direction of US interest rates and the dollar's firm tone.
In the crude oil market, prices fell on easing concerns over supply and improving diplomatic developments. In Europe, the euro weakened against both the dollar and the yen, reinforcing the backdrop of broad-based dollar strength. Short-term volatility may increase going forward depending on the outcomes of the BOJ meeting and FOMC.