With expectations of a Bank of Japan rate hike and Fed rate cut, the USD/JPY briefly fell to around 154.50 yen.

【12/4Market Overview

During Tokyo time, dollar/yen fell to155.02yen, then155.54yen as buyers returned. Also, when some reports suggested that “the BoJ may hike at the December meeting” and “the Abe administration would support it,” the yen fell to155.19yen. In European session, dollar/yen initially faced yen buying on expectations of BoJ rate hikes, briefly breaking the 12/1 low at12/1level of154.66yen and falling below154.50yen. In New York time, dollar/yen rose from a range around the low- to mid-154s to aroundNYtime, influenced by U.S. 10-year Treasury yields, to10year yields?)154yen area later, reaching the mid-155s at155.10yen. Additionally, U.S. initial jobless claims came in at19.1ten thousand, significantly better than market expectations22.0ten thousand, but the reaction of dollar buying was limited.

【12/5Market View