On the afternoon of the 5th, USD/JPY recovered to the low 158s as the decline in long-term US yields paused. It fell to the low 157.70s around midday, but buying back the dollar subsequently prevailed.
In Tokyo foreign exchange trading on the 5th, the dollar's exchange rate against the yen recovered to the low 158s late in the session, supported by a pause in the decline in long-term US yields in after-hours trading. As of 5:00 p.m., it was around 158.18, up 11 sen from 158.07 as of 5:00 p.m. the previous day. It fell to the low 157.70s shortly after noon, but buying back the dollar prevailed after selling subsided.
The previous day, the dollar plunged temporarily to the low 157.30s during Tokyo trading after the Democratic Party won a landslide victory in the US midterm elections, but recovered to the 158.00 to 158.10 range late in the session. During European trading, it rose to around 158.60, while during US trading it eased to around 158.20 early in the session before rebounding to the 158.60s and then moving sideways in the 158.30 to 158.50 range late in the session.
In the morning, USD/JPY was said to be testing lower levels on selling by corporate customers, falling share prices and lower US yields, but its decline gradually lost momentum. Selling by corporate customers increased due to the 5th/10th-day effect, and the pair fell to around 157.85 before the Tokyo fixing. Although downward pressure continued for a while in the afternoon, buying back the dollar strengthened somewhat as the decline in US yields paused.