The yen strengthened against the dollar in Tokyo foreign exchange trading on the 4th. As of 5:00 p.m., most trading had concluded with dollar-yen at 156.29–30, up 0.74 yen from the same time the previous day. Against the euro, the yen traded at 181.65–69 per euro, up 0.57 yen.
Morning trading saw directionless price action. At 10:00 a.m., dollar-yen stood at 155.76, roughly 0.05 yen weaker for the dollar compared with the New York close of 155.81. Although there was a brief buyback to 156.16 shortly after 8:00 a.m., the upward move did not last.
Once Japanese interbank players fully entered the market after 9:00 a.m., trading shifted toward probing the downside, with dollar-yen weakening to 155.30—matching the previous day’s low. However, the pair did not break below that level, recovering to the 155.90 range in a session marked by a lack of clear directional conviction.
EUR/JPY saw choppy, nervous trading. At 10:00 a.m., the pair stood at 181.12, roughly 0.02 yen weaker for the euro compared with the New York close of 181.14. With EUR/USD locked in a tight range, EUR/JPY briefly weakened to 180.63 in tandem with dollar-yen’s decline, but reversed course just above the previous day’s low of 180.53, recovering to the 181.30 range. However, after the Tokyo fixing passed, the pair again dipped below the 181 level at times.
EUR/USD traded in a narrow range throughout the session. At 10:00 a.m., the pair stood at 1.1628, roughly 0.0002 dollar stronger for the euro compared with the New York close of 1.1626. The morning range was limited to just 8 pips, with the pair essentially flat around the 1.1630 level.
The morning reference ranges were as follows:
| Currency pair | Low | High |
|---|---|---|
| Dollar-yen | 155.30 yen | 156.16 yen |
| EUR/USD | 1.1623 dollars | 1.1631 dollars |
| EUR/JPY | 180.63 yen | 181.51 yen |
Note: Reference values during morning trading hours on the 4th
Although dollar-yen briefly matched the previous day’s low during the morning session, it held firm without breaking below that level. The shift toward yen strength into the afternoon was attributed to the carryover of dollar weakness from overseas markets the previous day, as well as the passing of real-demand dollar buying by Japanese importers.
Market attention remains focused on views regarding the U.S. Federal Reserve’s monetary policy. Dollar-yen continues to find solid support in the low-155 range on the downside, while persistent selling pressure on rallies toward the mid-156 range caps the upside, leaving the pair in a difficult-to-call trading environment.
EUR/JPY likewise moved in tandem with dollar-yen, oscillating around the 181 level. With EUR/USD barely moving, EUR/JPY’s price action effectively reflected fluctuations in dollar-yen.
