According to an速報 from 外為どっとコム, USD/JPY remained unable to establish itself above ¥160. Attention is focused on the outcome of the G20 Finance Ministers and Central Bank Governors Meeting and US economic data.
In the foreign exchange market on Monday the 31st, USD/JPY strengthened to around ¥160.20 in the morning but ultimately ended trading around ¥159.75. This is believed to reflect a reaction to the dollar buying seen after comments by the Federal Reserve chair at the end of the previous week.
Regarding comments from Japanese and US officials, US Treasury Secretary Bessent was reported to have said that he “has information not available to the market” and that he is confident the Japanese government and the Bank of Japan will take measures leading to a stronger yen.
Today’s key economic indicators and events include the scheduled release of the US August ISM manufacturing index and July JOLTS job openings, as well as the G20 Finance Ministers and Central Bank Governors Meeting. While USD/JPY’s upside is expected to remain capped, the view is that its downside will be limited against the backdrop of expectations for a Federal Reserve rate hike in September.
Today’s USD/JPY outlook calls for an expected range of approximately ¥159.2 to ¥160.4. Caution is expected to persist over another attempt to establish levels above ¥160 and moves to correct the yen’s appreciation.