As German Ifo business sentiment showed an improvement, USD/JPY rebounded from the upper ¥156 range to the upper ¥157 range. Moves in US AI and semiconductor stocks and US-Japan monetary policy remain the focus of attention.
German Ifo business sentiment came in at 90.2, above market expectations and its highest level since May 2023. Optimism about the outlook has strengthened, and the view has emerged that the economic recovery will continue.
USD/JPY rose about 0.4% based on the previous day's closing level, rebounding to the ¥156.60 range in the Tokyo market and the ¥157.60 range in overseas markets. Some observers said the dollar strengthened relatively as momentum behind euro buying waned.
Today's expected USD/JPY range is 156.800–158.000. US earnings at major companies and US-Japan monetary policy events are expected to have a significant impact going forward.
US durable goods orders, the consumer confidence index and housing-related indicators are scheduled for release as key data points. Some observers believe the market reaction will be limited ahead of the FOMC monetary policy announcement.