Tokyo FX Markets Stagnate Ahead of Weekend Amid Falling Oil Prices

The Tokyo foreign exchange market saw major currency pairs stuck in tight ranges on the 24th as traders refrained from aggressive position-building ahead of the weekend.

USD/JPY hovered in the late 163 yen range with little conviction, weighed down by falling crude oil futures and lower US long-term interest rates. The pair dipped to 163.65 yen at one point but was supported by dip-buying from market participants who had missed earlier opportunities.

The June nationwide Consumer Price Index (CPI) release came in largely in line with market expectations, having a limited impact on USD/JPY. Market participants noted that there is a lack of fresh catalysts and no aggressive positioning ahead of the weekend, despite intermittent yen-selling and dollar-buying driven by escalating Middle East tensions.