The yen strengthened late last week as USD/JPY reversed its early-week rise. MUFG linked the initial dollar gains to higher crude prices and U.S. rates amid Middle East tensions, and identified risk aversion as a factor in the later yen buying. Three central-bank meetings were scheduled for Oct. 27-30.
MUFG Research’s Oct. 26 review put the currency pair’s weekly opening at 157.79 yen per dollar. Bank of Japan (BOJ) data recorded 157.79–157.81 at 8 p.m. ET on Oct. 18 (00:00 UTC Oct. 19), consistent with that level. MUFG linked the dollar’s early rise against the yen to higher crude prices and U.S. interest rates amid Middle East tensions.
MUFG’s chart, based on EBS and Refinitiv data through 11 p.m. ET Oct. 22 (03:00 UTC Oct. 23), showed a high of 158.68 on Oct. 20. The BOJ’s separate daily series put the Oct. 20 high at 158.60, leaving the two sources with different peak readings.
MUFG placed the reversal in Tokyo trading on Oct. 22. USD/JPY fell below 157 that day, then slipped under 156.50 early Oct. 23. The review associated the shift toward risk aversion with political uncertainty in France and losses in AI-related shares.
The BOJ recorded a 156.08–157.16 range for Oct. 23 and listed 156.95–156.97 at 4 a.m. ET (08:00 UTC). Reuters reported the yen rose 0.3% to 156.28 that day, linking demand to investors seeking safer assets as concern about AI spending unsettled markets.
MUFG later described the pair as back around 157 per dollar. The Associated Press said AI-linked stocks fell across global markets on Oct. 22. EconoTimes previously covered the pair’s rebound after a 156.08 low on Oct. 23.
Japan’s Monetary Policy Meeting is scheduled for Oct. 29-30; the ECB Governing Council meets Oct. 28-29, and the Federal Open Market Committee (FOMC) meets Oct. 27-28. MUFG identified the three gatherings as near-term policy events for currency markets.
