Dollar/Yen continues to rise following dovish remarks by Bank of Japan Governor Ueda.

【10/3Market Overview

In Tokyo time, USD/JPY moved higher on a risk-on tone supported by a rise in the Nikkei Stock Average. Also, Governor Ueda of the Bank of Japan indicated views such as “if the central outlook for the economy and prices is realized, a rate hike would be appropriate,” “we will examine the probability of realizing the economy and price outlook and make policy judgments appropriately,” and “first and foremost, it is important to maintain an accommodative monetary environment.” Overall, these remarks did not offer anything particularly new, and since they did not amplify expectations for an earlier rate hike, the pair pressed higher after the governor’s remarks, briefly breaking above the previous day’s high of147.51yen, rising to as high as147.81yen. In European trading hours, USD/JPY drifted lower following overseas declines in the 10-year U.S. Treasury yield.NY9month U.S.ISM Non-Manufacturing Index vs. forecast51.7 vs50.0, prompting dollar vendita and yen buying, with USD/JPY dropping briefly to147.06yen. Subsequently, as the U.S.10year treasury yield began to rise, buyers dominated, and position adjustments ahead of the weekend supported further buying, sending it back up to147.54yen.

【10/6Market View