In the New York foreign exchange market, dollar-yen broke above its 200-day moving average and rose temporarily into the ¥159 range. The possibility of stronger upward momentum toward ¥160 has been noted, with higher crude oil prices and rising yields cited as the backdrop.
The dollar was broadly stronger in today's New York market, with dollar-yen rising temporarily into the ¥159 range. Dollar-yen was observed to have clearly broken above its 200-day moving average, drawing attention to the possibility of further upward momentum.
Higher crude oil prices and rising US yields are seen as driving dollar-yen higher, and the possibility of stronger momentum toward ¥160 has also been noted.
Concern over yen-buying intervention by Japanese authorities has risen again. Finance Minister Katayama (片山) said that the principles had not changed since the Japan-US coordinated intervention, reaffirming that intervention remains an option.
The market sees the Bank of Japan's monetary policy response, rather than short-term intervention, as likely to determine the yen's sustained direction. Developments related to the euro and moves in other currencies are also being watched.