Dollar-yen rose to around ¥157.98 in the New York market on the 27th. In the Tokyo market, vigilance around ¥158 is expected to intensify ahead of monetary policy announcements in Japan, the US and Europe, while the Australian dollar could become more active depending on CPI.
In the New York foreign exchange market on the 27th, dollar-yen rose to ¥157.98, while euro-dollar fell to $1.1122. With strong US data and concerns over yen weakness offsetting each other, trading was expected to remain range-bound.
In today’s Tokyo market, buybacks are expected ahead of the FOMC and the BoJ meeting, but vigilance against yen weakness around ¥158 is also expected to increase. The upper boundary of the daily Ichimoku cloud at ¥158.44 and the 200-day moving average at ¥158.54 were cited as technical resistance levels.
Against the backdrop of Finance Minister Katayama’s (片山) comments stressing the need to curb yen weakness, the market was focused on coordinated Japanese-US efforts to prevent further yen depreciation, and resistance around ¥158 was expected. With the BoJ’s core CPI accelerating to 3.2% year on year, the market’s focus is on the next developments toward the 2% price stability target.
If Australia’s CPI, due this week, comes in at 4.2% year on year and 3.9% for the July-September quarter as forecast, expectations for an additional RBA rate hike will rise, providing support for the Australian dollar. In New Zealand, some expect the RBNZ to raise its policy rate to 3.00%, but the currency’s reaction could vary depending on the statement.