Against the backdrop of heightened tensions in the Middle East, USD/JPY in the New York market is expected to probe higher, supported by rising crude oil prices. However, continued caution is considered necessary regarding Japan-US measures to curb dollar strength and yen weakness.
In today’s New York market, USD/JPY is expected to probe higher, with rising crude oil prices resulting from heightened tensions in the Middle East cited as a backdrop. USD/JPY is expected to trade mainly in the ¥158 range, with attention focused on whether it can break above ¥158.57, near the 200-day moving average.
Meanwhile, caution remains warranted over the possibility of coordinated Japan-US measures to curb dollar strength and yen weakness. Situations in which statements countering yen weakness are issued or intervention by Japanese and US authorities becomes more likely are also anticipated.
Ahead of next month’s US midterm elections, reports say that concerns over yen weakness were expressed at a Japan-US summit and that statements were made to counter further yen weakness. USD/JPY is expected to face resistance around ¥160, and the possibility of intervention may increase if it moves toward the ¥159 range.
US housing-related indicators expected to be released today include September housing starts, building permits and the pending home sales index. Attention is warranted for negative surprises resulting from higher mortgage rates, with the 30-year fixed rate recently reaching 7.40%.