USD/JPY remained largely unresponsive after the U.S. Treasury Secretary announced an expansion of sanctions against Iran. After reviewing developments on the 24th, USD/JPY moved into the lower ¥159s on the 25th.
During the day on the 24th, USD/JPY initially moved toward a stronger yen, but the yen weakened again in the evening, with USD/JPY closing slightly higher than the previous day. The pair has continued to form higher lows this week, with range-bound trading persisting.
During the day on the 25th, order-book observations confirmed heavy buy orders around ¥158 and ¥157, while heavy sell orders were observed in the upper ¥159s and around ¥160. These levels are the focus of market participants' attention.
Correlation analysis between the yen and other currency pairs showed strong correlations with GBP/JPY and euro/yen over the past 24 hours, while EUR/USD and GBP/USD showed inverse correlations.
In terms of currency strength over the past 24 hours, the dollar was the strongest and the Canadian dollar the weakest. The yen moved modestly up and down on a daily basis, at times remaining in positive territory.
Economic indicators scheduled for release today include the Reserve Bank of Australia's meeting minutes, Germany's Ifo Business Climate Index and the U.S. Consumer Confidence Index.