USD/JPY rose briefly to 162.66 yen on the back of actual dollar purchases and solid U.S. economic data.

【6/30Market Overview

In Tokyo time, USD/JPY was driven by real demand ahead of month-end and quarter-end balance-of-payments dates (5・10days), lifting toward the Tokyo Fix as real demand bought dollars, breaking above the key level of162 yen and pulling in nearby stop-loss orders,162.38 yen, before retreating slightly on expectations of intervention by Japanese authorities, though keeping around the162 yen level. Moreover, although Finance Minister Katayama suggested yen-buying measures, market reaction was limited. In European trading, with expectations of higher U.S. rates and concerns over Japan’s fiscal deterioration, yen selling and dollar buying were favored. Market participants were also weighing the possibility that “due to concerns about Japan’s fiscal deterioration and political pressure on the BOJ, rate hikes could be delayed,” keeping USD/JPY around the162 area in the lower- to mid-162s.In New York time,,5th month US (Job Openings and Labor Turnover Survey) coming in at759.4730.0 million, lifting the dollar. USD/JPY briefly touched162.66 yen and1986 December high years since the

【7/1Market View