Dollar-yen traded in the 158 range and closed in New York on the 19th. Market expectations are expected to continue driving trading ahead of the Bank of Japan Monetary Policy Meeting at the end of this month.
Dollar-yen rose from ¥158.15 to ¥158.55 in the New York foreign exchange market on the 19th and ended trading at ¥158.50. Oil prices continued to rise against the backdrop of worsening conditions in the Middle East, while selling of US Treasuries pushed up long-term interest rates, supporting dollar buying.
The market backdrop includes selling of European assets and growing fiscal concerns, with speculation that the impact of large-scale demonstrations in France is also spilling over into interest rates and asset prices. Technically, the 200-day moving average at ¥158.57 was viewed as the next upside target, and the focus is on whether dollar-yen can break above the ¥158.95 high recorded on the 14th.
However, when ¥160, regarded as Japan's defense line, comes into focus, concerns about foreign exchange intervention are likely to intensify, making continued downward pressure on the dollar more likely.
The Bank of Japan Monetary Policy Meeting is scheduled for the 29th and 30th of this month, and expectations ahead of the meeting could affect the market going forward.