The dollar/yen rose about 0.7% yesterday to around ¥159.94, with the psychological ¥160 level and the recent high of ¥160.39 being watched as near-term upside targets. Attention is expected to focus on the outlook for rate-hike expectations in speeches by senior FRB officials.
The dollar/yen rose about 0.7% yesterday to around ¥159.94. The market continued buying back dollars against the backdrop of the US interest-rate outlook, again focusing on the psychological ¥160 level. The focus going forward will be whether the longer-term uptrend can be maintained.
The psychological ¥160 level and around ¥160.39, the post-intervention high for the government and the Bank of Japan, are cited as short-term upside targets. The view has been expressed that the uptrend is likely to be maintained unless expectations of an FRB rate hike recede.
A speech by a senior US FRB official was scheduled for the 11th, and market participants continued looking for additional monetary policy clues. A member of the BOE's Monetary Policy Committee also said that the tightening stance should be strengthened to contain the risk of persistently elevated wage growth.
Today's key indicators and events include economic data releases during Japan trading hours, speeches by senior FRB officials, and interest-rate- and fiscal-related news from Europe and the United States. These developments could provide catalysts for the dollar/yen.