USD/JPY is expected to remain range-bound in the Tokyo market this week, with the September Services Producer Price Index for businesses and core CPI excluding special factors the key data points.
USD/JPY briefly tested the ¥157 range in the New York market on the 26th, but position adjustments are expected to continue this week ahead of monetary policy announcements in Japan, the US and Europe.
In today's Tokyo market, attention will be focused on market movements ahead of the release of the September Services Producer Price Index for businesses and September core CPI excluding special factors, together with expectations surrounding the Bank of Japan's monetary policy meeting.
The September Services Producer Price Index for businesses is expected to rise 3.7% year on year, with views that higher transport costs and the pass-through of labor and fuel costs will continue. Meanwhile, after core CPI rose 2.6% in August, core CPI excluding special factors is also expected to accelerate in September.
Some observers believe discussion of the Bank of Japan reaching its 2% price stability target will intensify, and expectations for a rate hike at the December meeting may increase.