The Tokyo market's FX outlook is for dollar-yen to remain range-bound. Remarks by Prime Minister Takaichi (高市) and Middle East risk are cited as factors limiting the upside.
Market participants are increasingly of the view that dollar-yen in the Tokyo market will remain range-bound for some time without showing a clear direction. A recent factor is the possibility that remarks by Prime Minister Takaichi (高市) could affect market sentiment, restricting short-term moves.
In addition, risk in the Middle East is affecting global capital flows and is being perceived as a factor limiting dollar-yen's upside. However, many market participants believe that current downside support is strong, making sharp yen appreciation or depreciation unlikely.
Investors continue to monitor the content of Prime Minister Takaichi's (高市) remarks and developments in the Middle East, while observing whether dollar-yen tests the upper or lower end of its range. The market's underlying tone is often perceived as well supported.