The dollar/yen moves around in the 147 yen range in response to the U.S. quarterly GDP and core PCE.

【1/25Market Overview

In Tokyo time, USD/JPY5・10 business days (Go-to Day) ahead, demand for the morning value is leading. While a rise in domestic long-term yields capped upside at times,147 around mid-yen offered support on the downside, rising to147.88. In European hours, with the pullback in after-hours U.S. government yields, the USD/JPY declined gradually.NYtime,10－12month-quarter U.S. GDP (GDP) preliminary data came in at an annualized rate of3.3% versus the forecast2.0%, lifting expectations for dollar purchases and sending USD/JPY briefly up to147.93. Thereafter, the simultaneous release of10－12month PCE (Personal Consumption Expenditures) price index rose at an annual rate of2.0%, in line with market expectations, fueling expectations that inflation is being kept in check. With the decline in U.S. 10-year yields, the USD turned lower and USD/JPY fell to147.08. After some selling, buying activity resumed.ECB expectations of upcoming rate cuts arising from the ECB Governing Council led to “euro selling and dollar buying,” pushing USD/JPY up to147.89.