There was a scene where the dollar-yen pair rebounded from the 136-yen level to around 135.20 in the Tokyo market. Former Vice Minister Nakao responded to the statement that the current depreciation of the yen is not good for the Japanese economy, the role of monetary policy in the depreciation of the yen is clear, and the possibility of foreign exchange intervention cannot be ruled out.
Also, after the parliamentary testimony of FRB Chairman Powell yesterday, there was a dollar sale. Strong commitment to return to 2% inflation. The US economy is very strong and can deal with tightening measures, etc., and there was no noticeable change from the contents of the press conference after the latest FOMC. He reiterated the view that achieving a soft landing is extremely difficult. The euro dollar and the pound dollar were repulsing, and the dollar buying tendency before the parliamentary testimony was reversed.
Whether it is former Finance Minister Nakao or FRB Chairman Powell, the market seems to be quite nervous about what financial officials say. Although interest rate differentials are strongly conscious, it seems undeniable that short-term dollar buying has gone too far. FRB Chairman Powell’s parliamentary testimony will be held today at the House Finance Committee.
Although the dollar’s appreciation and the yen’s depreciation have been adjusted, the major trend remains unchanged, and we believe that the yen’s depreciation and the dollar’s appreciation. We plan to buy and attack where the dollar-yen depreciation has subsided. The guideline for tonight is 135.00. Pay attention to whether it cuts in here greatly or stops lowering.