Late in the New York session, USD/JPY traded in the upper 156 range. A strategist at a major UK bank said the yen could become the strongest major currency.
Late in the New York session, USD/JPY traded in the upper 156 range. After falling briefly to around 156.00 during Tokyo trading, it was bought back during overseas trading and at one point returned to the 157 range. Meanwhile, sell orders continued to cap the upside.
Next week will bring policy meetings at the Bank of Japan, the Federal Reserve, the European Central Bank and the Bank of Canada, among others. Alongside the performance of AI-related stocks, the sustainability of yen appreciation will be closely watched.
A strategist at a major UK bank said the yen could become the strongest major currency, analyzing that the outlook for the yen has improved against a backdrop of increased capital inflows into Japan and expectations of a Bank of Japan rate hike.
Market participants have suggested that the effects of foreign-exchange intervention may be beginning to emerge, that net capital inflows into Japanese financial assets are increasing, and that the Bank of Japan's rate-hike cycle is accelerating.