USD/JPY remains firm on stronger-than-expected US Employment Cost Index, but upper levels capped due to intervention concerns.

【4/30Market Overview

Tokyo time, USD/JPY rose toward the go-to-date fixings at month-end (5・10th andthe 10th) on buying sentiment ahead of the fixing, briefly reaching157.00 yen. Thereafter, in view of possible yen-buying intervention, the pair traded in the high 156s. In European hours, USD/JPY traded in the high 156s. time,1-3 month U.S. PCE price index exceeded expectations, intensifying concerns about upside wage inflation, raising expectations that the timing of the Fed’s rate cuts would be delayed, and along with a rise in U.S. long-term yields, dollar buying resumed. There were also dollar-buying flows around the London fix at month-end, with USD/JPY rising to yen.