According to 外為どっとコム’s daily FX report, dollar/yen is expected to remain range-bound today, with an expected range of ¥158.700–159.800. Just under 40% of a September US rate hike is priced in, while the report also highlights the need to monitor developments at the Bank of Japan.
Today’s daily FX report, published for the first time in 22 days, gives an expected dollar/yen range of ¥158.700 to ¥159.800. The market continues to anticipate range-bound trading, with no clear directional move emerging.
The latest US data showed that the PCE deflator rose more than expected. Durable goods orders also exceeded expectations month on month, although orders excluding transportation equipment came in below forecasts, pointing to mixed developments. As a result, just under 40% of a September Federal Reserve rate hike is priced in.
In Japan, attention is also focused on developments at the Bank of Japan, with Deputy Governor Himino (氷見野) scheduled to give a speech and hold a press conference. Some market participants expect the BOJ to maintain a positive stance toward an additional rate hike, although others say that nearly 90% of such a move is already priced in.
As reference points from recent price action, last month’s high was ¥159.78 and this week’s low was ¥158.71. These levels are being used as guides to the upside and downside. Range-bound trading could change depending on developments in the US interest-rate market and comments from the BOJ.