The dollar's upward momentum is likely to accelerate on the payrolls figures. The widening U.S. rate gap over Japan and the euro region is strongly supportive for the dollar.

240

The yen is looking undervalued at current levels. The Fed is probably getting into the final stage of rate hikes, and Japan and Europe may be coming closer to a tightening policy, so there may be some adjustment in the recent rally in the dollar against the yen and the euro.

208

The dollar met strong resistance due to selling by Japanese importers and speculators, and turned softer against the yen.

191

There is a growing possibility of a victory for the LDP and Koizumi by a big margin, which is positive for the yen. There is speculation that Koizumi's grip on power will strengthen, making it easier for him to promote reforms.

175

Investors have taken risky one-sided bets on a rising dollar this year. Some will likely continue cutting dollar holdings through the holiday period. That's limiting the yen's losses.

143

With the recent weak data, there is growing concern about the U.S. economic outlook. That lowers expectations for rate increases and is weighing on the U.S. currency. People are dollar bearish.

20