USD/JPY fell back below the ¥160 level to around ¥159.73 in the Tokyo market. In overseas markets, attention is focused on the prospect of another test of levels above ¥160, while the G20 Finance Ministers and Central Bank Governors Meeting will be held tonight.
USD/JPY fell below ¥160 in the Tokyo market. Although the pair briefly reached around ¥160.20 early in the session, it subsequently fell back to around ¥159.73. The downside was limited, and the pair showed resilience.
In overseas markets, pricing for a rate hike at the September meeting has risen to around 60% following comments by the Federal Reserve Board (FRB) chair over the previous weekend that suggested an early rate hike. The backdrop of dollar buying and yen selling may continue, supported also by higher crude oil prices.
The G20 Finance Ministers and Central Bank Governors Meeting will be held tonight. Attention is focused on the possibility that US Treasury Secretary Scott Bessent may meet with Finance Minister Katayama (片山) and Bank of Japan Governor Ueda (植田).
In terms of the currency outlook, if the pair breaks above today's high, it is expected to move with the 61.8% retracement level around ¥160.50, based on the decline following the previous intervention, in view.