The dollar/yen pair is expected to remain volatile in the ¥160 range despite expectations that the FRB will accelerate rate hikes. Based on the previous day's movement, the expected range is ¥159.2–¥160.6.
The dollar/yen pair ended slightly higher yesterday, then rose into the ¥160 range against a backdrop of higher US interest rates before plunging approximately 70 sen immediately afterwards. The market is focused on the possibility of a faster pace of FRB rate hikes, and long-term interest-rate movements could be affected by the next US economic indicator.
Many expect a range of ¥159.200 to ¥160.600 today, with trading likely to be volatile ahead of the psychologically important ¥160 level. US October PPI is cited as a key indicator to watch.