The view spread that expectations for consecutive BOJ rate hikes were receding, and USD/JPY recovered to the ¥158 range. The market is focused on the US September ISM Manufacturing Index in the New York market.
USD/JPY in the Tokyo market recovered to ¥158, with yen selling prevailing amid the view that expectations for consecutive rate hikes were receding following the opinions expressed at the BOJ Monetary Policy Meeting and the results of the BOJ Tankan survey. It rose to around ¥158.40 in the afternoon, reaching its highest level since 25 September.
As the view spreads in overseas markets that the BOJ may hold off on a rate hike, USD/JPY is expected to remain vulnerable to continued yen selling. In the New York market, attention is focused on the release of the US September ISM Manufacturing Index.
Tonight's scheduled events include revised manufacturing PMIs for Europe and the US, speeches by central bank governors and officials, and US initial jobless claims. If the US ISM Manufacturing Index exceeds expectations, USD/JPY's upside target could extend to around ¥159.
The current outlook for USD/JPY indicates a range of 157.400-159.200 during European and US trading hours. Volatile trading is expected to continue alongside the moves in the Tokyo market.