Dollar-yen extended its gains into the upper ¥158 range as long-term US yields rose. The market is expected to remain alert to efforts by the Japanese and US authorities to curb yen weakness while assessing the progress of vote counting in the US midterm elections.
In New York trading on the 3rd, dollar-yen rose to around ¥158.77 and euro-yen rose to ¥177.69. Euro-dollar was little changed in the upper ¥1.11 range.
In today's Tokyo market, trading is expected to be marked by caution toward efforts by Japanese currency authorities to curb yen weakness while investors assess the progress of vote counting in the US midterm elections.
Dollar-yen has broken above the ¥158.44 upper boundary of the daily Ichimoku cloud and the ¥158.63 200-day moving average. Further upside is considered possible depending on the election results.
Four possible midterm-election scenarios were presented: a divided government, a 50–50 Senate, a blue wave, and a red wave. Each could affect the direction of fiscal and monetary policy.