Dollar/yen rebounds to the 147 level after reports of Prime Minister Ishiba's resignation, then falls to the low 146s after denial of the report.

【7/23Market Overview

In Tokyo time, USD/JPY rose on the view that, once President Trump announces with Japan and the U.S. trade negotiations concludedSNSthat the opaque issue of U.S. tariffs would ease, making it easier for the Bank of Japan to move toward a rate hike,146.25yen was pushed down to the 146.25 level. Subsequently, the Nikkei rose sharply, and USD/JPY climbed to147yen briefly, then pared gains to146.19yen. However, amid reports that Prime Minister Ishiba would resign by the end of August, USD/JPY rose to147.21yen. In European time, after Ishiba denied the report, there was a shift to yen buying and dollar selling, and USD/JPY fell to146.11yen. In New York time, USD/JPY was recovered to146.73yen, but the market weakened around the 146 handle due to weaker-than-expected June existing-home sales and dollar selling as the euro rose,146yen's early- to mid-146s range.

Additionally, regarding the content of the U.S.-Japan tariff negotiation agreement, it was reported that Japan would impose tariffs of15% on imports from Japan while Japan would open its markets to autos, trucks, the United States, and other agricultural products; it was also reported that Japan would invest5500billion dollars in the United States.

【7/24Market View