The yen maintained its strengthening trend in Tokyo morning trading, with a correction to the yen's weakness during the extended holiday period, while USD/JPY traded in the high ¥157s to around ¥158.
USD/JPY in the Tokyo market moved toward a stronger yen and weaker dollar, reaching around ¥157.80. Although concerns over yen appreciation persisted against the backdrop of the Bank of Japan's weaker stance on additional rate hikes last Friday, the pair's upside remained capped. Market participants were also alert to warnings against yen weakness from officials in Japan and the United States. EUR/JPY fell to around ¥179.51 and GBP/JPY to around ¥208.78. AUD/JPY also declined to around ¥110.81. Following Australia's employment data, employment continued to expand, while the rise in the unemployment rate reflected increased labor-force participation, suggesting that the Australian dollar's weaker response is likely to be temporary.