USD/JPY fell as low as the 156 handle. Yen buying has intensified against the backdrop of remarks by senior Japanese and U.S. officials, finance authorities and the prime minister during the summit. It is currently trading around 157.
USD/JPY fell as low as the 156 handle today and has since been trading in the lower 157s. It had risen to the 159 handle the previous day, breaking above its 200-day moving average, but forceful remarks concerning Japan-U.S. verbal intervention are prompting yen buying.
Prime Minister Takaichi (高市) is said to have noted that yen weakness would put pressure on U.S. trade during the Japan-U.S. summit in New York, conveying the view that, in general terms, the yen's undervaluation is a problem.
In a phone call between the Japanese and U.S. finance authorities, Secretary Bessent indicated that a strong yen reflecting Japan's robust fundamentals would be desirable, while Finance Minister Katayama (片山) reportedly reaffirmed the issue of the yen's undervaluation.
At the same time, there are few signs that the Japan-U.S. interest-rate differential will narrow soon, and some believe that investor appetite for yen carry trades remains strong.
USD/JPY is at 157.21, while other yen crosses are also trending lower. Future moves may be influenced by remarks and events in Japan and the United States.