Tomorrow's foreign exchange market is expected to be driven by the results of Japan's July CPI, with USD/JPY expected to trade in a range of 158.00-159.00. Against the backdrop of domestic price trends, expectations for a rate hike at the Bank of Japan's September meeting are also likely to remain in focus.
From tonight through tomorrow, the USD/JPY market is expected to be driven by the results of Japan's July consumer price index (CPI). The market's expected range is ¥158.00 to ¥159.00 per dollar.
July CPI is expected to rise 1.8% year on year excluding fresh food, compared with a 1.6% increase in June. Market attention is focused on these domestic price trends, and there are reports that expectations for a rate hike at the Bank of Japan's September monetary policy meeting could strengthen.
In addition, some market participants believe that developments in the US market could also be affected, as they monitor currency movements in response to domestic price trends.