USD/JPY showed resilience during the Tokyo morning session, but its upside was limited, with the pair trading around ¥159. Although it recovered to the previous day’s high during the New York session, the impact of rising long-term interest rates was limited.
USD/JPY traded in the ¥159 range during the Tokyo morning session, falling to around ¥159.31 in the 9 a.m. hour before moving back around the mid-¥159 range. Although it had returned to levels around those seen after the coordinated Japan-US intervention, the move remained limited.
Early in the morning, yen buying emerged as Japan’s 10-year government bond yield reached a nearly three-year high, but the impact was limited. Cross-yen pairs also moved firmly on the strength of USD/JPY, although their trading ranges were narrow.
EUR/JPY rose from around ¥184.43 to around ¥184.76, while GBP/JPY rose from around ¥215.80 early in the morning to around ¥216.12. At times, both pairs approached the previous day’s highs.
EUR/USD fell to around 1.1575, while GBP/USD traded in the 1.3540–1.3554 range. Overall, the dollar’s strengthening trend continued, while upside remained capped.