In the New York market on the 21st, USD/JPY briefly recovered to the ¥159 level before holding in a range around ¥159.00. The Tokyo morning high was ¥159.13, while trading once again settled down through the first half of the London session.
In the New York market on the 21st, USD/JPY briefly recovered to the ¥159 level, touching ¥159.13 during the Tokyo morning. After trading around ¥159.00, dollar selling intensified during the London morning, sending the pair to ¥158.36. Dollar strength then returned, and trading continued around ¥159.00.
Ahead of the weekend, caution over signs of overheating was evident, while strong expectations surrounding the Jackson Hole meeting made it difficult for the market to establish a clear direction. U.S. Treasury yields rose further from their rangebound trading through the New York morning, prompting dollar buying, while gains in stocks also supported yen selling.
As of the time of writing in Japan, USD/JPY showed subdued movement into the New York afternoon, while moves in EUR/JPY and pound-related pairs were also limited. EUR/USD was somewhat constrained by dollar strength during the New York morning, while GBP/JPY rebounded after falling.
Overall, with events scheduled for the latter half of next week, it was difficult for the market to establish a clear direction. The market continued to assess movements in U.S. stocks and bonds, as well as whether foreign-exchange intervention would occur.