The weaker-dollar trend following the US employment report is expected to continue, with the morning USD/JPY rate expected to remain in the upper 157-yen range. Attention will focus on how Prime Minister Takaichi (高市) explains the fiscal policy in her policy speech.
On the 2nd, USD/JPY fell by approximately 0.1% on a closing-price basis. Expectations for a US rate hike receded against the backdrop of weak results in the US September employment report, and selling of the US dollar prevailed. In addition, persistently high crude oil prices and concerns about fiscal conditions and the supply and demand of Japanese government bonds affected the yen, while the dollar pared its decline to the upper 156-yen range.
Today, Prime Minister Takaichi (高市) is scheduled to deliver a policy speech at a plenary session of the House of Representatives. The focus will be on how she explains the policy of “responsible proactive fiscal policy,” including a consumption tax cut. If the explanation of funding sources is ambiguous, concerns about increased government bond issuance could intensify, potentially being viewed as a factor weakening the yen.
During US trading hours, the US September ISM Non-Manufacturing Index is scheduled to be released, and USD/JPY is expected to fluctuate depending on the result of the US economic indicator.
Today's USD/JPY forecast range is 157.000–158.600 yen.
The latest USD/JPY chart is available on the page provided by 外為どっとコム.