Dollar-yen in today's New York market is expected to remain firm as tensions in the Middle East are likely to keep oil prices elevated. At the same time, markets remain on alert for expectations of coordinated US-Japan intervention to restrain dollar strength and yen weakness.
In today's New York FX market, dollar-yen is expected to test higher levels against the backdrop of rising oil prices. However, markets remain wary of an acceleration in yen weakness due to the impact of heightened tensions in the Middle East.
Dollar-yen has risen from around ¥158.55 to ¥158.60 today, and the focus is on whether it can break above the 200-day moving average at ¥158.57. The possibility of coordinated US-Japan measures to restrain dollar strength and yen weakness will continue to be closely watched.
Ahead of next month's US midterm elections, concerns over yen weakness were expressed at the US-Japan summit, and it was reported that all options would be considered if yen weakness progresses. Analysts have pointed to the possibility of stronger verbal intervention against yen weakness and a higher risk of actual intervention.
US housing starts, building permits and pending home sales data are scheduled for release as housing-related indicators from September onward, raising concerns that rising mortgage rates could produce negative surprises. Some estimates put the 30-year fixed mortgage rate at 7.40%.
The projected range for dollar-yen is ¥159.04 on the upside and ¥157.55 on the downside. Yamashita