Due to the opaque situation in the Middle East, the USD/JPY remains range-bound around the high 150s.

【3/24Market Overview

In Tokyo time, as progress information on Middle East developments intermingles, due to geopolitical risks, crude oil futures drift higher and the dollar/yen rose to158.79yen. In addition, Bank of Japan Governor Ueda indicated that the underlying pace of price rises will gradually accelerate and stated that monetary policy will be conducted appropriately to achieve the 2% inflation target accompanied by wage growth. In European time, with the outlook for negotiations toward a ceasefire between the United States, Israel, and Iran remaining uncertain, the dollar/yen wandered in the upper 150 yen range.158yen range time, the 2-year US2year Treasury auction was weak, pushing up the yield on the 10-year U.S. Treasury. Broad dollar buying led the dollar/yen higher to temporarily159.18yen. After some profit-taking, the yield on the 10-year US Treasury rose by a smaller extent. Right before the close, reports that “U.S. negotiators WITKOFF and Kushner are working toward a one-month ceasefire with Iran” were released, sending crude oil and stock prices up while the dollar weakened, and the dollar/yen fell to158.36yen.

【3/25Market View