Dollar-yen in the Tokyo market is expected to remain range-bound ahead of the U.S. September CPI due tonight. The pair is expected to continue trading with the upper boundary of the daily Ichimoku cloud and the 200-day moving average in focus, while investors assess headlines concerning the Middle East and oil prices.
In the New York market on the 13th, dollar-yen recovered to approximately ¥158.47. Meanwhile, the euro weakened against the yen, and European currencies came under relatively heavy downward pressure.
In the Tokyo market, dollar-yen is expected to trade mainly around the ¥158.44 upper boundary of the Ichimoku cloud and the ¥158.56 200-day moving average ahead of tonight’s U.S. September CPI release. Caution is also required regarding headlines concerning the Middle East.
WTI crude oil has risen to the ¥95 range against a backdrop of heightened tensions in the Middle East and will be watched as a factor affecting dollar-yen.
This month’s U.S. CPI is expected to rise 0.6% month on month and 3.6% year on year, while FedWatch puts the probability of a rate hike at around 20%.
There is a view that the cautious stance toward additional rate hikes expressed by New York Fed President Williams and Fed Vice Chair Jefferson may reflect the position of the Fed leadership as a whole.