The U.S. midterm elections saw the Democrats win, the dollar-yen fell to around 157.39 and was bought back up into the 158 range.

【11/4Market Overview】

Tokyo time, the USD/JPY moves around at the early session158.74yen, but trends weak as election results in the United States are watched. With Democrats taking the lead in the vote count, expectations of reduced policy push under the Trump administration and difficulty in advancing fiscal expansion push the U.S. 10-year bond yield lower in aftermarket. As U.S. stock index futures fall, the Nikkei average also declines, leading to dollar selling and yen buying, and the USD/JPY falls temporarily to10yen? 158157.39yen, and later, as the U.S. and Japanese stock indices reduce losses, the USD/JPY recovers to the158yen level. In European time, with the Democrats winning both houses in the U.S. midterm elections, and amid expectations that Congress will curb the Trump administration’s tariff policy and military actions toward Iran, U.S. stock index futures rise, broad risk-on sentiment strengthens yen selling, pushing the USD/JPY to158.59yen.NYtime, the USD/JPY rose briefly to158.67yen, then as crude oil futures decline and the U.S.10year yield falls,158.16yen were pressured lower to158yen range with little directional movement.

【11/5Market View】