On the 28th, USD/JPY in the Tokyo foreign exchange market temporarily fell to the ¥157.70 range, but recovered to the ¥157.90 range and continued trading after selling subsided. The movement was attributed to month-end real-demand transactions.
As of noon on the 28th, USD/JPY was at the ¥157.90 range, slightly higher than around the previous day's close. During the morning session, buying back emerged after selling by real-demand participants had run its course, although the pair at one point fell to the ¥157.70 range.
Including the reaction during European hours and movements during US hours, price direction was unclear for much of the day, but the pair recovered again from the middle of the session, supported by buying back in US technology stocks. Toward the close it traded around levels near ¥158, and around noon it continued moving back toward the ¥157.90 range.
Although trading by real-demand participants ahead of month-end was said to have been heavy, there was also speculation that the rise in the Nikkei Stock Average supported buying back in USD/JPY. Ahead of the FOMC decision early tomorrow morning and a press conference by Fed Chair Warsh, some market participants said activity was likely to remain limited.
Movement against the euro was range-bound relative to movement against the dollar, with the level at noon reported at ¥175.68–69 per euro and $1.1126–1126 against the dollar.