USD/JPY edged up into the upper ¥158 range in Tokyo trading on the morning of the 24th. Against a backdrop of expectations for higher US long-term yields, the market remained range-bound as it awaited Treasury Secretary Bessent's press conference.
USD/JPY was quoted around ¥158.87 in Tokyo trading on the morning of the 24th, up roughly 5 sen from the previous weekend. Higher US long-term yields supported the dollar, while the yen weakened slightly.
USD/JPY continued to trade in the upper ¥158 range as a rebound from the decline during European hours coincided with moves in long-term yields and oil prices during US trading hours. The pair at one point fell to around ¥158.50 in the first half of the session.
US yields temporarily declined after the US Treasury announced on the 19th that it would expand its Treasury buyback program. However, the expansion was not viewed as monetary easing, and the initial reaction of treating it as a factor for selling the dollar had run its course, prompting yields to rise again. Markets continued to await Treasury Secretary Bessent's press conference ahead of the hearing.
The view remains widespread that higher oil prices resulting from escalating tensions in the Middle East could fuel longer-term inflation concerns. Warnings related to sanctions on Iran have also kept developments concerning the Strait of Hormuz in focus, along with reports from Bloomberg and others. With few fresh drivers, USD/JPY is likely to remain within its range in Tokyo trading.