Ahead of the U.S. employment data release, USD/JPY moved toward a stronger yen and weaker dollar in Tokyo trading, falling to the mid-¥157 range. Tokyo core CPI accelerated to 2.7% year on year in September, and reports that expectations for an additional Bank of Japan rate hike had strengthened led to broader dollar selling against major currencies in the afternoon.
In Tokyo foreign exchange trading on the 2nd, USD/JPY moved toward a stronger yen and weaker dollar, reaching around ¥157.54. The acceleration in core CPI, excluding fresh food, to 2.7% year on year supported yen buying.
Dollar selling against major currencies spread into the afternoon, capping USD/JPY gains. With U.S. employment data due for release today, the dollar's recent gains underwent a correction.
EUR/USD traded slightly lower for the dollar, reaching around $1.1260, while GBP/USD was around $1.3217 and AUD/USD around $0.6940.
EUR/JPY traded in the mid-¥177 range, GBP/JPY in the mid-¥208 range and AUD/JPY in the mid-¥109 range. Trading activity during Tokyo hours was limited.