USD/JPY weakened in the European market, falling below the intraday low. Dollar selling accelerated against the backdrop of weaker crude oil prices and movements in US long-term yields, strengthening the yen-buying bias.
In European trading, USD/JPY fell to 157.89, with the pair trading in a 157.89-158.29 range. It remained below the intraday low. The loss of momentum in crude oil prices and movements in US long-term yields weighed on the dollar, suggesting continued dollar selling.
Meanwhile, EUR/JPY traded in the 179.92-180.29 range, while EUR/USD traded in the 1.1387-1.1394 range. Overall, yen crosses remained biased to the downside.
Against this backdrop, reports that the US president had cautioned against yen depreciation were seen as a factor supporting the yen, while market participants speculated that fund flows across market sectors had shifted in favor of a stronger yen.