Dollar-Yen Set for Volatile Trading Amid Month-End Flows and US Economic Data

The dollar-yen pair is likely to experience choppy trading on September 30 due to month-end and quarter-end funding flows as well as a heavy slate of U.S. economic data releases.

Market participants are bracing for sudden swings around the Tokyo fixing window, where Japanese corporate players may adjust their positions and settle transactions.

The dollar-yen has found underlying support from persistent dollar-buying and yen-selling pressure driven by elevated U.S. long-term yields, but upside momentum remains constrained.

Vice Finance Minister Mimura's statement on September 29 that the message shared by both the Japanese and U.S. governments, that yen undervaluation is a concern, was 'extremely clear' triggered a bout of yen buying on intervention fears, sending dollar-yen tumbling to 156.51.