In Tokyo trading on the afternoon of the 24th, USD/JPY was around 157.90, with gains capped just below 158.00. While a rise in global bond yields has strengthened expectations of an early rate hike by the U.S. Federal Reserve, caution over yen weakness is also helping stabilize the market.
On the afternoon of the 24th, USD/JPY traded in a range of 157.79 to 158.37, with trading unsettled around 157.90. With the pair approaching the key 158.00 level, its limited upside has drawn attention. In the Japanese market, factors driving yen depreciation and factors prompting caution are currently mixed.
The backdrop is a global rise in bond yields. Expectations of an early rate hike by the U.S. Federal Reserve are growing, supporting continued dollar buying, while the view is that rising caution over coordinated intervention by Japan and the United States is capping gains.