USD/JPY has recovered to the ¥158 range. Given the current situation, the government and BOJ are seen as having difficulty reactivating yen-buying intervention.
On Wednesday, 23 September, USD/JPY rose to the lower ¥158 range during the New York session. The recovery to the ¥158 range was supported in part by easing concerns over excessive yen selling through the previous day, and the pair began trading with the early-month highs in focus.
The preliminary September U.S. PMIs for both manufacturing and services exceeded market expectations, giving the dollar the upper hand. This at times strengthened the move higher in USD/JPY, although intervention remains difficult to implement effectively.
Views from Federal Reserve officials may also influence external factors, but under current conditions, the possibility of official intervention is viewed as limited. U.S. fiscal and interest-rate developments are also said to have a bearing on policy decisions regarding yen-buying intervention.
Today’s focus is the forecast range for USD/JPY, which is indicated at ¥157.5 to ¥159.3. Attention is warranted for fluctuations in the exchange rate depending on developments in major economic indicators and events.