Dollar/yen recovers to the low 150s after expectations for an earlier rate hike by the Bank of Japan retreat.

【12/4Market Overview

In Tokyo time, as Nikkei newspaper online reported that the Bank of Japan would keep policy unchanged at its December policy meeting, selling of yen and buying of dollars intensified among overseas players, and the USD/JPY rose to150.17yen. In European hours, USD/JPY rose to151.22雇用統計yen amid expectations of an early rate hike by the BOJ and also due to rising U.S. 10-year Treasury yields.151.22yen.In New York time,11月ADP150was worse than expected, and USD/JPY slipped to the high 150syen range. However, due to dovish signals from Fed as chair Powell’s remarks suggested a strong economy and satisfaction with the current state of the economy and monetary policy, USD/JPY rebounded to about151yen.In November, the ISM Non-Manufacturing Index came in under expectations, and along with a drop in the U.S. 10-year yield, USD/JPY fell to149.98yen. Thereafter, when Fed Chair Powell signaled that the U.S. economy is currently in remarkably good shape and very satisfied with the current economic and monetary policy environment, USD/JPY recovered to around150.66yen.

【12/5Market View