Dollar-Yen Range-Bound Ahead of US Yields and Data
The dollar-yen pair continued to trade in a narrow range in the lower 159-yen level on the 26th, hovering around 159.20 yen as market participants awaited U.S. long-term yields and economic data.
In the previous day's Tokyo session on the 25th, dollar buying prevailed as the U.S. 10-year Treasury yield climbed to 4.71%, resulting in a 29-sen decline for the yen compared with the prior day.
The pair maintained a firm tone throughout the day, trading at 159.44-45 yen by 5:00 p.m., but the downside was limited due to underlying support from declining U.S. long-term yields and speculation of additional rate hikes by the Bank of Japan.
Market participants are now focusing on upcoming U.S. economic indicators and the trajectory of the Japan-U.S. interest rate differential, which could influence the dollar-yen pair's direction.