USD/JPY weakened in the Tokyo market this afternoon, standing at ¥155.55 as of 5 p.m. The pair came under selling pressure at times during the day, updating its intraday low without recovering to the ¥156 range. The backdrop included expectations of a Bank of Japan rate hike and pressure to correct the yen's weakness.
USD/JPY weakened in the Tokyo foreign exchange market on the afternoon of the 7th, standing at ¥155.55 as of 5 p.m. The dollar was approximately ¥0.25 weaker than at 3 p.m. After falling to ¥155.55 shortly after noon, the pair saw some buying back, but never recovered to the ¥156 range, and its intraday low was updated to ¥155.52. The backdrop included speculation that the Bank of Japan could accelerate rate hikes and pressure from US Treasury Secretary Bessent to correct the yen's weakness, keeping the upside constrained.
EUR/JPY was capped on the upside. It stood at ¥180.80 as of 5 p.m., about ¥0.15 lower than the ¥180.95 level at 3 p.m., moving in line with USD/JPY. Although the pair recovered after falling to ¥180.71, it was capped below ¥181, and slipped below ¥180.80 when USD/JPY softened again.
EUR/USD was marginally firmer. It stood at $1.1623 as of 5 p.m., a modest increase of approximately $0.0009 from $1.1614 at 3 p.m. The pair briefly rose to $1.1624 as the dollar's weakening trend continued. The reference ranges to date were approximately ¥155.52-¥156.28 for USD/JPY and $1.1607-$1.1624 for EUR/USD.