USD/JPY failed to establish itself above ¥160 this morning. Expectations of a September rate hike by the Federal Reserve remain in focus as a dollar-positive factor, while attention is also turning to developments at the G20 Finance Ministers and Central Bank Governors Meeting.
The morning forecast range for USD/JPY was given as ¥159.200 to ¥160.400. Although the pair strengthened to the low ¥160s after the open, it ultimately fell below ¥160 and is expected to trade within today's range. The previous day's close was down approximately 0.2%, and the morning buying was characterized as temporary.
Expectations of a September rate hike by the US Federal Reserve are considered likely to support the dollar. The focus is on how the Japanese government and the Bank of Japan respond to efforts to correct the yen's weakness. US Treasury Secretary Bessent has indicated his intention to ask Japan to take measures to strengthen the yen, prompting a view that the cooperative stance between Japan and the US could influence the market's subsequent direction. He is also reportedly considering a meeting with BOJ Governor Ueda (植田).
Today's economic indicators in focus include the US August ISM Manufacturing Index and July JOLTS job openings. In addition, the G20 Finance Ministers and Central Bank Governors Meeting is under way, and the market is expected to react to related comments and remarks.