USD/JPY rose into the ¥158 range in the New York market, but gains were limited and the pair failed to extend higher. With events including the US midterm elections and employment data ahead, the market is seeking to establish a trading range.
In today’s foreign exchange market, the yen weakened during overseas trading as the market remained range-bound, and USD/JPY briefly rose into the ¥158 range. However, there was no active attempt to test higher levels.
Following monetary policy meetings of central banks in various countries, it has been noted that the macroeconomic environment is providing less support for the dollar. With AI-related stocks weakening and long-term yields rising, some market participants believe the urgency of additional rate hikes has diminished.
Some market participants believe that, if lower oil prices and pressure on US assets persist, the dollar will be prone to falling from its range-bound position near recent highs. While events including the US midterm elections, Friday’s employment data and the situation in Iran are making investors more cautious, it has been noted that opportunities to break out of the range are likely to emerge.
The focus is on the chain reaction among these events. Depending on the performance of AI-related stocks after the US midterm elections and the employment data, short-term interest rates could affect the dollar exchange rate. The situation in Iran also poses a noted risk of affecting movements in oil prices and the dollar.
For option expiries accompanying the NY cut at midnight Japan time, expiries around ¥157.95 and ¥158.00 have been observed.