USD/JPY rose to the low ¥160s as the yen weakened. Rising tensions in the Middle East and higher US 10-year Treasury yields are seen as contributing factors.
The yen weakened against the US dollar yesterday, and USD/JPY closed at a level reflecting further yen weakness. In addition to rising oil prices, higher US 10-year Treasury yields were cited as factors weighing on the yen, while the ISM Manufacturing PMI came in below market expectations. Although the yen strengthened at times following the release, the overall trend remained one of yen weakness. Remarks by Federal Reserve officials also suggested the possibility of rate hikes if inflation does not ease.
In today's technical analysis of USD/JPY, dated 2 September, the order book showed heavy buy orders around ¥158 and ¥159, which are being watched as support levels. Meanwhile, heavy sell orders were seen in the upper ¥160s, with selling also concentrated around the upper ¥159s.