In early NY FX trading, dollar-yen is attempting to move above the 200-day moving average, with the focus on whether it can hold levels in the lower ¥158 range. Geopolitical factors, including the situation in the Middle East and crude oil trends, are also affecting the market.
Dollar-yen rose to around ¥158.65, attempting to move above the 200-day moving average at around ¥158.55. Trading was thin because Japan's markets were closed for a holiday, and the pair was in a phase of consolidating around the ¥158 level.
An attack causing fatalities occurred over the weekend at a major airport in Riyadh, the capital of Saudi Arabia, and concern over the situation in the Middle East remains strong. The market also showed signs of digesting the latest attack for the time being. North Sea Brent crude rose as high as $105.63 before falling to $103.95.
While strategists pointed to instability in the Middle East, they explained that factors surrounding the region remained mixed. The market was reacting ahead of the World Petroleum Congress.
No options expiries have currently been identified at the NY cut as of the relevant time in Japan. Continued attention is considered necessary regarding future developments.