During New York trading, USD/JPY recovered to the ¥158 range as the dollar's strengthening trend continued. Meanwhile, the euro remained on a downward trend against the dollar, with dollar buying prevailing.
In today's New York foreign-exchange market, USD/JPY rose to the ¥158 range as the dollar's strengthening trend continued. The pair briefly fell to the low ¥157 range in the afternoon as yen buying pushed USD/JPY lower, but it recovered to the ¥158 range after no intervention-related information emerged and the pair was bought back.
USD/JPY moved to recover last week's decline, which followed verbal intervention by Japanese authorities in conjunction with Prime Minister Takaichi's visit to the United States, and began testing a recovery of the 200-day moving average. However, it has not reached levels at which expectations of past intervention have intensified. The possibility that the move could signal coordinated intervention by Japan and the United States continues to be highlighted.
The market was strongly in wait-and-see mode ahead of the U.S. employment report due tomorrow. As the previous day's PCE price index came in below expectations and expectations for an October Fed rate hike receded, comments from FOMC members also indicated that there was no need to rush into a rate hike.
EUR/USD briefly fell to the low ¥1.12 range, with European risks and interest-rate differentials driving euro weakness. EUR/JPY briefly plunged to the ¥176 range under the influence of yen strength. Sterling moved against both the yen and the euro, affected by developments surrounding the U.K. prime minister.