USD/JPY fell to the low 159s tonight, with downside risks coming into focus against the backdrop of BOJ Policy Board member Takata’s (高田) comment that “consecutive rate hikes could be possible.” Attention is expected to focus on US employment-related data and other market catalysts due tonight.
USD/JPY retreated to around ¥159.40 in Tokyo trading. The pair is reportedly continuing to face difficulty rising, amid movements in crude oil prices and comments from the Bank of Japan.
In overseas markets, Takata’s (高田) comments were viewed as a downside factor for the dollar, and the possibility of consecutive rate hikes has been discussed. This could lead markets to focus on the prospect of a faster pace of rate hikes by the Bank of Japan, according to reports.
The expected range for USD/JPY during European and US trading hours is 159.100-160.400, with key events scheduled for tonight including the US ADP employment report and US manufacturing orders.
Until tonight’s market catalysts have been released, the pair may be seen as holding firm in the low 159s. Higher crude oil prices and geopolitical risks are also reportedly expected to affect the market.