Dollar-yen falls on East–West tensions, but then trades with little movement around the 158 level.

【1/19Market Overview

During Tokyo time, the USD/JPY fell to around 157.42 yen as reports said President Trump announced additional tariffs on European countries regarding the Greenland issue and Europe was considering retaliatory measures, raising concerns of worsening US-Europe relations and prompting risk-off buying of the yen. After the selling eased, it rebounded to the upper 157 yen area. In European trading, Prime Minister Kishida held a press conference at the Prime Minister’s Office and announced at the start of the ordinary Diet session on the 23rd that the lower house would be dissolved. Regarding the currency, he said, “we will monitor speculative moves and take necessary actions,” while avoiding comment on a rise in long-term interest rates.

After the press conference, USD/JPY saw mixed trading, but no clear directional trend emerged.NY time, due to the U.S. markets being closed for Martin Luther King Jr. Day and participation dwindling, USD/JPY hovered around 158 yen with little movement.

【1/20Market View