In the New York market, dollar-yen again tested its 200-day moving average and rose to the mid-¥158 range. U.S. Treasury yields and renewed dollar buying provided support, but caution toward further gains remains strong.
In the New York foreign-exchange market, dollar-yen was bought and rose to the mid-¥158 range. The 200-day moving average is again being watched as an upside target.
As technical factors, U.S. Treasury yields remaining in positive territory and a modest resumption of dollar buying are believed to have supported yen depreciation. At the same time, expectations that the 200-day moving average will cap gains and concern about currency intervention are limiting the upside.
The downside has remained firm, and expectations of further yen depreciation remain strong. However, uncertainty in market sentiment surrounding energy prices and the FRB's rate outlook is limiting short-term moves.
Movements in euro-dollar and sterling-dollar are also having an impact. As concerns about Europe's fiscal deficit and the ECB's policy outlook continue to affect markets, attention is also turning to policy events from next week onward. The focus ahead will be on economic indicators scheduled for 15-21 and the FRB's outlook, as well as the dollar's response.