Gaitame.com forecasts that dollar-yen will remain supported on the downside in the ¥156 range, as successive warnings against yen weakness from Japanese and U.S. authorities weigh on the pair. The expected range is ¥156.800–¥158.400.
Dollar-yen fell approximately 1.0% on a closing-price basis the previous day. At the Japan-U.S. summit, President Trump expressed concern about yen weakness, while the Japan-U.S. finance ministers' meeting reaffirmed the view that the yen is undervalued. While this has provided support for yen buying, the outlook for dollar-yen remains uncertain ahead of the release of key U.S. indicators this week.
Key upcoming events include the U.S. August personal consumption expenditures price index (PCE deflator) on the 30th and the U.S. September employment report on the 2nd. In Japan, the Tankan survey and the summary of opinions from the monetary policy meeting are expected to be released.
Dollar-yen is expected to find support on the downside in the ¥156 range, while the ¥158 range is seen as likely to cap the upside. Market attention is focused on developments related to further rate hikes in Japan and the United States.