The market is expected to focus on post-midterm-election political developments in today's New York session. With the release of US employment data also pending, dollar-yen is expected to move between periods of advancing toward the ¥158 level and retreating toward the ¥156 level.
In today's New York session, market attention is expected to turn to changes in the political landscape following the midterm election results, even as the release of US employment data approaches. Some views suggest that the market's reaction to the employment data may be temporary.
The difficulty of predicting developments in US politics is said to be behind the lack of a one-way bias toward either yen buying or yen selling, and trading is expected to be volatile. The downward trend in US long-term yields has been cited as a factor supporting yen buying.
Following the midterm elections, statements by President Trump and the vice president and changes in US government policy are anticipated. Expectations for progress in peace negotiations to end the war in Iran could affect crude oil futures prices. How Israel and the broader Middle East situation are handled will also be a focus for the market.
Meanwhile, fiscal policy developments, differences between the fiscal policies of Japan and the United States, and changes in policy toward China could affect dollar-yen. The market could react depending on the employment data, but political developments are currently seen as the larger theme.
Today's expected range for dollar-yen is an upside of ¥158.77 and a downside of ¥156.96.