USD/JPY briefly fell below ¥153 on 8 September, while the market focused on US Treasury auctions totaling $119 billion scheduled for 9–10 September. Reports of a Bank of Japan rate-hike leak, higher oil prices and US interest-rate developments are also influencing the markets.
USD/JPY briefly fell below ¥153 on 8 September. It has dropped ¥7 over the past 5 trading days and is now showing signs of a technical rebound. Some observers also suggested that bringing forward expectations for a Bank of Japan rate hike had been one factor.
US Treasury auctions will be held from 9 to 10 September, with the total amount expected to be $119 billion. At the previous auctions, yields on 10-year and 30-year Treasuries remained high and demand was weak, so attention is focused on the possibility that the results of the latest auctions could affect interest-rate levels.
The Ministry of Finance’s policy of expanding its buyback operations has also been reported. The focus is on how repurchases of long-term government bonds will affect market liquidity and interest rates. Together with higher oil prices and rising US interest rates, these developments will be watched as potential drivers of a rebound in the dollar.
While some believe that AUD/JPY remains in a long-term uptrend, factors including Bank of Japan policy, US interest rates and oil-market developments are influencing the direction of yen crosses more broadly. The market continues to monitor expectations for a September rate hike and changes in interest-rate differentials.