Dollar-Yen Stalls at Mid-158 Yen Amid Caution Over Currency Intervention

The dollar-yen pair experienced a stall in its five-day rally on the 25th, hovering around mid-158 yen. The Tokyo foreign exchange market saw selling attributed to position adjustments, following gains through the previous session. Trading began at 158.76 yen as of 8:00 a.m., about 10 sen weaker than the New York close.

The pair struggled to extend gains amid caution over potential currency intervention by Japanese authorities. Sharp daily surges in U.S. long-term and ultra-long-term yields provided downside support, limiting aggressive selling. As of 10:00 a.m., the dollar-yen traded at 158.64 yen per dollar.

The EUR/JPY also saw a soft tone, with the pair trading at 180.46 yen per euro as of 10:00 a.m. Selling pushed the pair back to 180.42 yen after briefly reaching just above its September 22 high of 180.83 yen. The decline in EUR/JPY weighed on EUR/USD, which edged slightly lower.