Dollar-yen faced a downside move on softer-than-expected U.S. PPI, but yen depreciation pressure remained persistent, with a broad rebound to the 162 yen range.

【7/15Market Overview

In Tokyo time, the USD/JPY sold off around the Tokyo fix,161.96to as low as 161.96 yen. However, there were also moves to buy the dip below162.00yen. After that, the pair traded in a tight range around the 162.20 yen level, with no clear direction. In European session, USD/JPY rose on concerns about Middle East tensions162.20to around 162.42 yen, but later stalled.NYtime,6month U.S.PPI(Producer Price Index) fell short of expectations, and along with a drop in U.S. 10-year Treasury yields, broad dollar selling led overall, pushing USD/JPY down to161.89yen. However, downside pressure from fundamentals on the yen remained solid, and it was bought back to162.28yen.

【7/16Market Outlook