The dollar-yen pair is expected to trade within a ¥157.200-158.600 range in the morning. With the previous day's price action and the CPI release during New York hours in focus, trading is expected to continue around ¥158.
The dollar-yen pair fell approximately 0.4% the previous day to end trading at around ¥157.91. Oil prices fell after US President Trump said the possibility of resuming a large-scale attack on Iran was low.
European and US stocks rose as concerns over the Middle East eased, and cross-yen pairs generally moved higher. However, strong yen buying against the dollar is unlikely, and even if Japanese stocks are expected to rise today, the dollar-yen pair is forecast to remain firm in the ¥157 range.
The US October CPI is scheduled to be released during New York hours today, but the year-on-year rate is not expected to be released because the previous-year data are missing due to the government shutdown. The market expects a month-on-month increase of +0.3% and core CPI of +0.2%, but these figures are considered unlikely to significantly shift expectations for a December rate hike.
The latest dollar-yen chart is available via an external link, and the full report from 外為どっとコム can be read on its website.