In the Tokyo market ahead of the 10th-day gōtōbi, USD/JPY traded in the upper ¥157 range. Market participants appeared sensitive to real-demand flows and positioning ahead of the central rate fixing in the morning.
In the Tokyo foreign exchange market early on the 10th, USD/JPY lacked direction, standing at ¥157.91 per dollar as of 8:00 a.m., almost unchanged from the New York close. The early-morning range was narrow, with no aggressive buying or selling.
As the day was a gōtōbi, when the 5th and 10th fall on the same day, demand from importers buying dollars was expected to concentrate. Market participants had become more cautious ahead of the central rate fixing at 9:55 a.m. The early-morning range was narrow at ¥157.89–¥157.97.
The euro remained firm against the dollar at $1.1220 per euro as of 8:00 a.m. The difference from the New York close was small, while the recent high of $1.1225 and the high of $1.1235 reached on the 6th were seen as potential resistance levels. EUR/JPY was ¥177.16, about 7 sen below the New York close.
In the previous day's Tokyo session, USD/JPY was at times capped in the afternoon, while expectations of a sharp rise in the Nikkei 225 had also begun to be priced in. Range-bound trading could continue depending on real-demand flows after the central rate fixing, while interest-rate trends and share-price movements in overseas markets remained under close watch.