Yesterday, USD/JPY rose as the yen weakened. Today's analysis shows strong buying interest in the mid-¥157s, with substantial buying interest also observed in the early ¥159s. Meanwhile, sell orders are prominent in the late ¥158s. The rise in the US 10-year Treasury yield has been cited as a background factor.
In trading on 19 October, the yen weakened against the dollar. Although yen strength prevailed at the start of trading, the pair subsequently moved broadly in the direction of a weaker yen. The rise in the US 10-year Treasury yield has been cited as a possible factor, and USD/JPY closed higher on a daily basis. The NAHB Housing Market Index was weaker than market expectations, but USD/JPY showed little reaction. President Trump's remarks also indicated an intention to hold a trilateral summit with Russia and China.
In today's (20 October) technical analysis of the USD/JPY chart, the order book showed strong buying interest in the mid-¥157s and early ¥159s, as well as heavy selling interest in the late ¥158s and mid-¥159s. These levels are attracting attention.
Correlation analysis between USD/JPY and other currency pairs showed a strong correlation over the past 24 hours with EUR/JPY, GBP/JPY and AUD/JPY, while AUD/USD also showed a correlation. In contrast, GBP/USD and EUR/USD moved inversely.
Today's (20 October) main economic indicators are scheduled for release at 15:00: the UK September unemployment rate, and at 18:00: Germany's October ZEW Economic Sentiment survey.