The yen strengthened Thursday as two market reports placed USD/JPY on different sides of ¥157.50, a level FXStreet identified as technical support for the pair.
FXStreet put the rate at ¥157.70 at 12:41 a.m. ET (04:41 GMT) Oct. 22, describing it as the pair’s lowest in a week. Reuters separately reported the dollar down 0.6% at ¥157.27. The Bank of Japan (BOJ) daily exchange-rate data showed USD/JPY at ¥158.12 to ¥158.14 at 4 a.m. ET (5 p.m. JST) Oct. 21. A lower reading means one dollar buys fewer yen.
FXStreet’s technical analysis marked ¥157.50 as support and pointed to ¥157.15 below it, with resistance at ¥158.07 and ¥158.47. The outlet disclosed that an AI tool helped prepare the analysis.
FXStreet linked Thursday’s move to a weaker dollar, expectations for a BOJ rate increase and intervention risk. Reuters attributed yen demand to risk aversion and bond buying. Chris Scicluna, head of economic research at Daiwa Capital Markets, told Reuters: “AI is making people nervous, as is oil ... and as is France.” U.S. Treasury daily data showed the 10-year yield at 5.13% on Oct. 21, down from 5.19% on Oct. 14, after 5.12% on Oct. 20.
Japan’s Ministry of Finance said it would not hesitate to conduct further joint intervention after Japan’s July 31 yen purchase coordinated with the U.S. Treasury. The ministry’s statement did not announce a new intervention on Oct. 22.
The BOJ’s overnight call-rate guideline is around 1.25%, while the Federal Reserve’s target range is 3.75% to 4.00%. Reuters has linked the rate gap between the United States and Japan to yen weakness and higher import costs. The Federal Reserve meets Oct. 27-28, followed by the BOJ on Oct. 29-30; the BOJ’s outlook report is due Oct. 30.
