The yen market has stalled in the foreign exchange market. Selling pressure on the yen stemming from the recovery in Japanese and US share prices is offset by buying pressure resulting from lower oil prices, making a breakout from the range unlikely ahead of the US CPI release.
The yen market lacks direction in the foreign exchange market, with the recovery in Japanese and US share prices offset by the impact of lower oil prices. The yen has moved little and is expected to remain within its range.
In Tokyo foreign exchange trading on the 10th, the yen was moving almost flat around ¥158 to the dollar. There had been no significant movement from 5 p.m. the previous day.
Ahead of the US Consumer Price Index (CPI) release, expectations were growing that monetary policy in Japan and the US would remain on a rate-hike path, but there were few clear factors likely to determine the yen’s direction.
Looking ahead, some market participants believe that a move for the yen to break out of its range is unlikely.