Dollar/yen fell to as low as 146.73 yen on expectations that the Bank of Japan would find it easier to move toward raising interest rates.

【8/15Market Overview

During Tokyo time, the USD/JPY pair is supported by the stronger-than-expected preliminary GDP for the April-June quarter in Japan, which showed4-6quarterGDP data up+0.3%/year-on-year+1.0% and exceeded expectations, prompting expectations that BOJ may raise rates, leading to initial yen buying and the USD/JPY dropping to147.05 and exceeded expectations, prompting expectations that BOJ may raise rates, leading to initial yen buying and the USD/JPY dropping to yen. In European hours, USD/JPY fell below147 and dropped to146.75 yen. Afterwards, a rebound followed, with activity around147 yen remaining rangebound.NY trading, as U.S.10-year Treasury yields declined, USD/JPY temporarily146.73 yen. When the 10-year yields began to rise again, it climbed to147.33 yen. Also, the8月month U.S. manufacturing PMI,7 month U.S. import price index exceeded expectations,7 month U.S. industrial production,8 month U.S. University of Michigan consumer sentiment index preliminary reading came in below expectations.

【8/18Market View