In the Tokyo foreign exchange market on the morning of the 25th, USD/JPY held in the low ¥159s, with the yen's weakening trend continuing. EUR/JPY also continued to rise, reaching the upper ¥185s, and the yen's weakness was increasingly pronounced in European and US markets.
In the Tokyo market on the morning of the 25th, USD/JPY traded in a range of ¥159.02 to ¥159.22, with the yen's weakness standing out. The dollar continued to dominate against the yen, supported by the interest-rate differential between the United States and Japan.
At the same time, EUR/JPY rose from ¥185.41 to ¥185.76, while EUR/USD climbed from $1.1657 to $1.1671 before pulling back somewhat. The euro remained firm against the dollar as well, highlighting the pattern of selling focused solely on the yen.
In the previous day's European and US markets, USD/JPY rose mainly in the ¥159 range, but trading was subdued amid a lack of catalysts and limited direction. The market lacked a clear direction amid fiscal concerns and expectations for fiscal consolidation.
Market participants are also considering a move to test the ¥160 level, but speculation remains strong that Japan could intervene against a sharp depreciation of the yen. Some expect this to make further gains more difficult.