USD/JPY was stuck in the upper ¥157 range in the Tokyo FX market. Trading was limited amid a lack of cues ahead of the Tokyo market closure and the US midterm elections.
Trading in the Tokyo market was thin on the morning of the 3rd due to the market closure, with USD/JPY moving in a narrow range in the upper ¥157 range. Ahead of the vote count in the US midterm elections, participants took a wait-and-see approach to the results, restraining active trading.
The morning trading ranges were ¥157.79 to ¥157.96 for USD/JPY, ¥176.52 to ¥176.76 for EUR/JPY, and 1.1177 to 1.1197 for EUR/USD. USD/JPY had approached ¥158 at times the previous day, but the upside had been viewed as difficult to extend.
While the narrowing of the Japan-US interest-rate differential was in focus following the previous day's decline in US long-term yields, US yields began to recover in the morning, reducing the momentum behind dollar selling. The euro and commodity currencies continued to weaken against the dollar.
There is speculation that price movements could expand during European and US trading hours, with participation constraints resulting from the Tokyo market closure expected to have an impact.