Yesterday, yen strength dominated, with movements in the U.S. 10-year Treasury yield and reports of progress in talks between the U.S. and Iran affecting the market. An order-book analysis using MT5 on the 21st indicated heavy buying in the mid-¥157s and notable buying in the lower ¥159s, while sell orders were heavy in the upper ¥158s.
Yesterday, yen strength dominated in USD/JPY, with the pair consolidating in the morning before the yen strengthened from the afternoon onward. The decline in the U.S. 10-year Treasury yield was seen as a factor, and the yen strengthened further in the evening. Expectations for progress in talks between the U.S. and Iran subsequently emerged, but reports that the talks were in progress and close to an agreement were reported to be false, prompting a slight move back toward yen weakness. As a result, USD/JPY closed with the yen stronger than at the close on the 19th. U.S. housing starts and building permits were released, with mixed results. Sources close to the Bank of Japan said the October meeting was likely to leave rates unchanged.
Technical analysis of the USD/JPY chart today, 21 October 2026, showed heavy buy orders in the mid-¥157s in the order book, placed near the support line, as well as heavy buy orders in the lower ¥159s. Sell orders were heavy in the upper ¥158s near the resistance line, with heavy selling also reportedly present in the mid-¥158s. These observations were compiled as chart characteristics.
Correlation analysis between USD/JPY and other currency pairs showed that EUR/JPY was correlated with USD/JPY over the past 24 hours, while AUD/JPY had a weak correlation. GBP/USD had the strongest inverse correlation, while EUR/USD and AUD/USD had weak inverse correlations, as did GBP/JPY.
In an analysis of the strength of the major 8 currencies, the pound was the strongest and the dollar the weakest over the past 24 hours. The yen fluctuated around zero and was in negative territory this morning. The dollar moved further into negative territory.