In the Tokyo market on the afternoon of 7 October, USD/JPY traded in a narrow range around the mid-¥158s, with the advance pausing amid a lack of market drivers. Dollar buying initially strengthened on higher crude oil prices and U.S. yields, but with the available catalysts exhausted, there was no further move higher.
In the Tokyo market on the afternoon of 7 October, USD/JPY traded in a narrow range around ¥158.40. The trading range so far has been approximately ¥158.11 to ¥158.50.
Dollar buying temporarily strengthened in the morning against the backdrop of higher crude oil prices and U.S. interest rates, but the momentum was restrained, making further dollar buying difficult.
Caution over coordinated Japanese-U.S. intervention remains strong, and selling of the yen has begun to recede.
No specific new market drivers were introduced this time, so attention will remain focused on further market developments and the possibility of intervention.