USD/JPY fell to the lower half of the ¥157 range in the Tokyo market. Dollar selling and yen buying accelerated as US long-term yields declined and Japanese stocks weakened.
USD/JPY fell to the lower half of the ¥157 range in the Tokyo market. Although the pair briefly strengthened to around ¥158.25 early in the session, it softened to the ¥157.10 level in the afternoon. Lower US long-term yields and weakness in Japanese stocks were cited as the factors behind the decline.
The Nikkei Stock Average closed down ¥1,713 at ¥62,907.84, while the TOPIX fell 46.23 points to 3,997.50. Selling in AI-related and semiconductor stocks weighed on the market.
In overseas markets, a break below ¥157.50 intensified selling pressure, sending USD/JPY down to around ¥156.76. Lower US long-term yields and weakness in European and US stocks are seen as potentially prompting the pair to test further downside.
Key events to watch tonight include the release of US initial jobless claims, and the projected range is 156.200-158.000. The continued consolidation around ¥158 since October is viewed as a factor behind the downside pressure.