In the U.S. and European FX markets, the dollar-yen pair is expected to hold firm against further declines, while expectations of additional intervention by the government and the Bank of Japan remain present, creating conditions in which dollar buying may come into focus.
The outlook for the U.S. and European foreign exchange markets suggests that the dollar-yen pair may continue to resist temporary downward pressure. Market participants are closely monitoring movements in major currencies.
Some market participants remain alert to the possibility of additional intervention, expressing the view that whether intervention occurs and its scale could become short-term drivers of market volatility.
Against this backdrop, the dollar may see periods of buying back, and attention is therefore expected to remain focused on short-term fluctuations in the foreign exchange market.