In the London market, USD/JPY briefly fell into the ¥156 range but recovered to the ¥157 range on a daily-chart rebound. Dollar buying and yen selling temporarily intensified as higher oil prices, driven by tensions in the Middle East, coincided with concerns about AI-related stocks.
After yen buying in early Tokyo trading ran its course, USD/JPY fell to the ¥156.00 range in early Tokyo trading. Yen appreciation eased as the Nikkei average recovered, and USD/JPY returned to the ¥157 range. The dollar-buying and yen-selling trend continued in early London trading, with USD/JPY reaching ¥157.16. Continued oil price gains in response to tensions in the Middle East also supported dollar buying.
The upward momentum eased, and the market shifted to dollar selling and yen buying. Concerns about AI-related stocks resurfaced globally, prompting risk-averse yen buying. USD/JPY was briefly sold down to the ¥156.50 range, but persistent caution about aggressive selling meant it did not reach the morning low in Tokyo.
Once downside was supported in the ¥156.50 range, USD/JPY recovered to the ¥156.90 range, and choppy trading continued. Cross-yen pairs showed a similar pattern. EUR/JPY moved from around ¥175.20 in early Tokyo trading to around ¥176.00 before consolidating ahead of the London market.
EUR/USD softened from the ¥1.1210 range to around ¥1.1185, weighed down by weaker eurozone PMI data. GBP/USD fell from around ¥1.3390 to around ¥1.3365, with unstable movements on either side.
GBP/JPY rebounded from the ¥209.20 range in early Tokyo trading to the mid-¥210 range, then rose to near ¥210.40 in early London trading before coming under renewed yen-buying pressure and falling back to the ¥209.40 range.