NY traders returned to the market, but USD/JPY failed to recover the ¥155 level. Remarks by the US Treasury Secretary weighed on market activity, with today's forecast range and key market factors outlined.
After moving sharply the previous day, USD/JPY turned toward yen strength during the Tokyo session in response to strong Japanese wage data, although there was also a period when it temporarily recovered the ¥154 level. Remarks by the US Treasury Secretary further weighed on market sentiment, curbing the momentum for dollar buying and yen selling.
The forecast range for today's popular currency pairs presented by Gaitame.com was ¥152.900 to ¥154.500 for USD/JPY. In light of the previous day's moves, this range was viewed as a level where selling on rallies was likely to emerge.
Scheduled indicators and events as of 09/09 were listed as potential market drivers. These included the release of China's consumer price index and producer price index, a speech in the euro area, and a US 10-year Treasury auction.
Economic and market developments for 8 September also included an increase in Japan's real wages, reports concerning a review of the GPIF's asset allocation, an expansion in China's trade surplus, and information on geopolitical risks related to the US military. These factors were said to affect overall market momentum.