In Western foreign exchange markets on the 13th, USD/JPY is expected to trade around ¥160, with dollar buying likely to continue against the backdrop of rising US inflation pressure. At the same time, upside gains are expected to be limited amid concern over the ¥160 line in the sand.
In Western foreign exchange markets on the 13th, USD/JPY is expected to struggle to rise. Dollar buying is expected to be supported by higher long-term interest rates against the backdrop of US inflation pressure. EUR/USD is expected to weaken from the 1.1090 level toward the 1.1040 level, while USD/JPY may center on movements around ¥160. Expectations for stabilization in the Middle East and slightly higher crude oil prices are also expected to support dollar buying.
In overseas markets ahead, monetary policy and the foreign exchange policies of Japan and the United States will be in focus. The recently released CPI was strong, indicating US inflation pressure, and depending on the PPI trend, a phase of higher interest rates and a stronger dollar is anticipated. At the same time, concern over coordinated intervention by Japan and the United States is strong, and USD/JPY is expected to face limited upside with the ¥160 line in the sand in focus.