USD/JPY traded in the low ¥153s in New York on the 9th, closing at ¥153.59. Ahead of the European Central Bank Governing Council meeting, views have emerged that movements in the euro are likely to spill over into the yen market.
In the US market on the 9th, USD/JPY fell to ¥153.09 before rebounding to ¥153.80, and ultimately closed at ¥153.59. Dollar selling prevailed at times amid the US Treasury's plan to expand Treasury buybacks.
There were instances when movements in long-term interest rates turned back toward dollar buying, and elevated US interest rates continued to provide downside support for the exchange rate.
The ECB Governing Council is scheduled to meet today, 10 September, and with an additional rate hike expected for the first time since June, the euro's reaction is seen as likely to spill over readily into the yen market.
The stance of the Japanese and US authorities toward restraining dollar strength and yen weakness remains firm. With the PPI due on the 10th and CPI on the 11th, trading is expected to be volatile depending on the indicator results.