USD/JPY Range-Bound as Yen Strength and Fed Hike Bets Offset Each Other
The USD/JPY currency pair traded relatively flat on Tuesday in thin Silver Week market conditions. The yen maintained its strength while a broadly stronger US dollar limited gains.
The pair was around 157.46, with the US Dollar Index (DXY) trading near 100.60, close to levels last seen in late July. This is supported by expectations of further Federal Reserve rate rises.
Market participants also monitored Middle East developments following comments by US President Donald Trump at the UN, which provided little indication of de-escalation.