Against the backdrop of lower oil prices, a yen-positive factor, USD/JPY fell to around ¥158.9 in the Tokyo morning session. Yen selling was unwound as oil prices declined, while the Australian dollar was also seen moving higher.
In the Tokyo morning session, USD/JPY fell to around ¥158.88. The continued decline in oil prices prompted an unwinding of yen selling driven by concerns over widening trade and fiscal deficits in Japan.
Among major currency pairs, EUR/JPY moved in the direction of yen appreciation to around ¥185.45, GBP/JPY to around ¥216.81, and NZD/JPY to around ¥94.74. AUD/JPY, meanwhile, rose to ¥114.25. The Australian dollar's rise was attributed in part to Australia's CPI slowing to a year-on-year increase of 3.5%, a moderation that exceeded market expectations.
Against this backdrop, the unwinding of yen selling progressed further, in what was reported as the overall trend in the Tokyo FX morning session.