In the New York market on 7 September, dollar-yen rose temporarily to ¥156.75 before retreating to ¥155.36 and trading in the upper ¥155 range. Dollar buying prevailed following the strong US employment report, while upside was capped by expectations for Bank of Japan rate hikes and caution over intervention. The battle around ¥155 is expected to remain the market's focus.
In the New York foreign exchange market on 4 September, dollar-yen rose to ¥156.75 before falling to ¥155.36 and closing at ¥156.23. The move came after the US August employment report showed nonfarm payroll growth expanding more than expected, marking the strongest result since March and reviving expectations for interest-rate hikes. From the yen's lows, expectations for early, consecutive Bank of Japan rate hikes and caution over official intervention to correct yen depreciation prompted renewed yen buying.
From today onward, markets are expected to remain volatile as investors seek direction ahead of monetary policy events in Japan and the United States scheduled for mid-September, namely the FOMC's September meeting and the Bank of Japan's Monetary Policy Meeting. The battle over whether the dollar can hold around ¥155 is expected to be key to determining the market trend going forward.