In the New York market on the 8th, dollar-yen rose as high as ¥158.37 before closing at ¥157.89. Although robust US data and easing geopolitical risks provided support for dollar buying, range-bound trading is expected to continue with resistance in the mid-¥158 range in focus.
In the New York foreign-exchange market on the 8th, dollar-yen rose as high as ¥158.37, then fell as low as ¥157.52 before ending trading at ¥157.89. US initial jobless claims for the previous week came in below expectations, reaffirming the health of the US labor market, while higher oil prices also supported dollar buying.
However, geopolitical risks temporarily receded after President Trump said that the United States would not attack Iran, weakening the support for dollar buying provided by higher oil prices.
Today, the 9th, the mid-¥158 range, where the 200-day moving average is located, is expected to be watched as clear resistance, continuing to cap gains. On the downside, the ¥157.44 and ¥157.45 levels could act as support, potentially limiting declines. Expectations that the Bank of Japan will be cautious about raising rates at this month's meeting are leaving selling pressure on the yen, while the market is also more alert to possible government and BOJ intervention in the ¥158 range.
The currency-options market has seen selling based on expectations of range-bound trading, and range trading centered on the upper ¥157 range is expected for the time being.