The yen fell for a second straight session to the lower ¥158 range against the backdrop of rising U.S. yields. The yen strengthened to around ¥157.77 in the morning, but yen selling and dollar buying again gained the upper hand in the afternoon, with dollar-yen trading in the lower ¥158 range.
On the 9th, the yen fell for a second straight session in the Japanese market, reaching ¥158.33–34 to the dollar as of 5 p.m., with the yen weakening and the dollar strengthening from the previous day. In the morning, yen buying led the move on declining U.S. long-term yields, and the yen strengthened temporarily to around ¥157.77. From early afternoon, U.S. long-term yields rose again, and yen selling and dollar buying gained the upper hand as the market focused on a widening U.S.-Japan interest rate differential.
As the afternoon progressed, caution over intervention by the Japanese government and the Bank of Japan provided support for the yen, while views spread that range-bound trading centered on the upper ¥157 range would continue. Euro-yen traded at ¥177.83–85, while euro-dollar traded around $1.1231.
In response to movements in U.S. long-term yields and market expectations for the interest rate differential, the mid-¥158 range was seen as resistance on the upside for the yen, while ¥157.44 and ¥157.45 were expected to function as support on the downside. Yen-selling pressure may persist, but some market participants said caution over intervention would restrain the market. Movements in euro-yen and euro-dollar were also affected by yen-denominated trading conditions.