Dollar-yen is expected to trade around ¥159 in overseas markets, while caution is likely to remain over another attempt to move into the ¥160 range. Trading is expected to continue in the ¥158.50–159 range.
In overseas markets, dollar-yen is expected to form a range mainly in the upper ¥158s to ¥159s after reaching ¥159.60 and renewing its rebound high following the yen’s appreciation. The limited number of market participants during the summer holiday period is also expected to support a subdued range-bound market.
While concerns about the resumption of intervention are expected to intensify if the rate moves above ¥160, buying is likely to emerge when the dollar declines, and strong demand around the ¥158 level is expected to persist. Range-bound trading is likely to remain the dominant theme today as well.
Euro-yen is expected to trade in the upper ¥184s, with a cautious approach to ¥185 depending on market conditions. Euro-dollar is expected to settle in the low to high $1.16 range.
Pound-yen is expected to trade around ¥216, with the possibility of continued moves above the ¥216 level. U.S. housing-related indicators and import and export price indexes are scheduled for release, but their impact on the market may be limited.