Dollar-yen capped on Japanese holiday, hovering in lower 158 range as U.S. bond market closed — BigGo Finance

The dollar-yen pair faced persistent upside pressure in the Tokyo foreign exchange market on the 12th. As of 10:00 a.m., the pair traded at 158.11 yen per dollar, roughly 20 sen weaker than the New York close of 158.31 yen. The previous weekend’s high of 158.43 yen was viewed as near-term resistance, and the early-morning buying momentum gradually faded. The pair briefly dipped to 158.10 yen shortly after 9:30 a.m.

In the United States, the bond market was closed for the Columbus Day holiday, while WTI crude oil futures in after-hours trading fell to the mid-$90-per-barrel range. With U.S. inflation concerns receding, dollar selling gained a slight edge. The Tokyo market was also closed for Japan’s Sports Day holiday, and thin trading conditions prevailed amid reduced market participation.

EUR/USD edged higher. As of 10:00 a.m., the pair traded at $1.1215 per euro, up about 0.0015 dollars from the New York close of $1.1200. The euro was gradually bought up to $1.1217 in line with the broader dollar-selling trend. In early trading, the pair briefly dipped to $1.1186, marginally below the previous weekend’s low of $1.1188, but subsequently found support and stabilized. On the downside, market focus is on whether the year-to-date low of $1.1161 set on the 5th of last week will hold as a support level.

EUR/JPY traded in a narrow range. As of 10:00 a.m., the pair stood at 177.32 yen per euro, about 2 sen weaker than the New York close of 177.34 yen. With dollar-related trading dominating since the start of the week, the pair lacked clear direction in the lower 177-yen range.

Today’s reference ranges are as follows:

Currency PairReference RangeDollar-yen158.10 – 158.40 yenEUR/USD$1.1186 – $1.1217EUR/JPY177.01 – 177.37 yen

Note: Ranges reflect combined trading between the 8:00 a.m. and 10:00 a.m. marks.

Market participants noted that with major markets closed for public holidays in both Japan and the U.S., a wait-and-see mood was expected to dominate Asian trading hours. At the same time, some cautioned that reduced liquidity from thinner participation could lead to temporary outsized market swings in response to unexpected news.