Dollar-yen weakened to around ¥158.40 in the Tokyo morning session, with no move to test the upper end of this month's range and a strong wait-and-see mood prevailing. Next week will see a concentration of key events, including the Israeli general election, the US FOMC meeting and the Bank of Japan's monetary policy meeting.
In the Tokyo morning market, dollar-yen traded generally around ¥158.40, with no significant move to test the upper end of this month's range. Market participants remained on the sidelines, and the market continued to await a clear directional move. Euro-yen reached around ¥177.90 and pound-yen around ¥211.15, but overall trading activity remained subdued.
Events from next week onward could influence market movements. Attention is focused on statements by officials and policy decisions, including the outcome of the Israeli general election, the US Federal Open Market Committee and the Bank of Japan's monetary policy meeting. With midterm elections also ahead, markets are seen as needing to remain alert to volatility across asset classes.
As views spread that trading will continue within the current range, movements in major currency pairs remain limited, and activity aimed at capturing a sudden trend reversal has not intensified. Ahead of next week's economic and financial events, investors appear to be maintaining a risk-averse stance while preparing to assess new information.