Dollar-yen remained rangebound around ¥158 in the early New York session following Tokyo trading. The 200-day moving average is around the mid-¥158 range and is being watched as a potential ceiling.
Dollar-yen has remained rangebound around ¥158 in today's foreign-exchange market. The 200-day moving average is around the mid-¥158 range as a potential ceiling, and a break above it would heighten concerns about intervention, while the downside has remained firm. Expectations for a stronger dollar and a weaker yen are competing with each other.
Market reaction to US inflation data has been mixed. While some believe rising energy prices will support inflation, caution remains over movements in US Treasury yields. A December rate hike and the possibility of an additional hike next year are being watched as the market's central scenario.
Technically, a weekly engulfing pattern has formed, making the outlook somewhat more bullish, although some indicators also suggest limited upside. On a daily basis, a doji is acting as a psychological drag, and the focus for near-term price action is whether the close will fall below the 21-day moving average near ¥157.95. Attention is also focused on the 21-day moving average and the observed NY option expiry level at ¥157.15.