USD/JPY rebounded in the New York market yesterday, rising to ¥159.18. The pair is expected to trade mainly around the ¥159 level in the Tokyo market, with ¥160 remaining the target, according to reports.
USD/JPY rebounded in the New York market yesterday, rising to ¥159.18. Dollar buying temporarily strengthened on movements in long-term US Treasury yields, while EUR/USD rose as high as $1.1711 before being pushed back to $1.1669.
In today's Tokyo market, USD/JPY is expected to move around the ¥159 level, with views that selling pressure on the yen remains for reasons that cannot be explained solely by the Japan-US interest rate differential. The expansion of the US Treasury's Treasury buyback operations and the fiscal stance of the Takaichi administration have been cited as factors supporting the dollar, while caution over intervention ahead of ¥160 also remains strong.
The nationwide July Consumer Price Index (CPI) is scheduled to be released in the Tokyo market, with market attention focused on the fact that this will be the first release based on the new 2025 base year. USD/JPY is also expected to respond depending on speculation over a rate change at the Bank of Japan's Monetary Policy Meeting and movements in US interest rates. The pair may trade with its upside constrained near ¥160 amid continued caution around that level.