Dollar-yen returned to the mid-¥158 range and at times fell as far as the mid-¥157 range during New York trading. The Democrats were reported to have won landslide victories in both chambers in the US midterm elections, prompting buying to dominate after-hours stock trading, while the dollar remained soft.
As the dollar weakened during overseas trading, dollar-yen remained in the mid-¥158 range. It also fell briefly to the mid-¥157 range during Tokyo trading, while there were reports that resistance was strong near the 200-day moving average. Uncertainty remains over the outlook, but signs of a reversal have also emerged.
In the US midterm elections, the Democrats were reported to have won landslide victories in both chambers, with the possibility of a widening seat gap being cited. The market took the result positively, and buying strengthened in after-hours trading in the US stock market.
Across the market, US Treasury yields fell and crude oil prices declined. The dollar was generally soft, but the yen weakened. Correlations with AI-related stocks and policy risks affecting IT-related sectors, including data centers, are areas of focus going forward.
The terms of office for members of both chambers are expected to begin in January next year, and caution toward developments in the region, including the situation in Iran, is expected to continue toward year-end. The election results could affect future policy implementation and market risk appetite.