The South African rand/yen rate temporarily fell below ¥9.40 as lower U.S. equities and the Bank of Japan's hawkish press conference were reflected in the market, but it rebounded to the ¥9.45 range on dip buying. A range-bound market centered on ¥9.40 was in focus throughout the week.
From last week into this week, the South African rand/yen rate temporarily fell below ¥9.39–¥9.40 against a backdrop of a sharp decline in U.S. equities and the Bank of Japan's hawkish press conference. It subsequently rebounded to around ¥9.4262 near the weekly close, returning to the ¥9.45 range as dip buying and demand from real-money investors provided solid support.
Looking back at movements since 26 October, the rate recovered to the ¥9.50 range along with the dollar/yen rate, before falling again as concerns about U.S. technology stocks' creditworthiness resurfaced. The low was ¥9.3965, easily breaking below the psychologically important ¥9.40 level, but buying support from the following day onward helped it hold the ¥9.45 range again.
At recent levels, the focus is on whether the rate can break through the ¥9.46–¥9.47 resistance zone on a recovery, with ¥9.40 providing firm downside support. The current basic pattern is viewed as range trading centered on the ¥9.42–¥9.47 zone.