The US dollar has given back about half of its gains against the yen, with the 157 area likely serving as initial resistance.

(1) The US dollar against the Japanese yen has already given back about half of the gains since the low touched in September; Marc Chandler of Bannockburn Capital Markets said in a report that the 157 yen area may now serve as initial resistance. (2) The chief market strategist said that last week’s decline in the US dollar against the Japanese yen may have been due to a sharper drop in US interest rates, triggered by the fading wave of artificial intelligence trading. (3) He stated that over the past 30 trading days, the correlation between the exchange rate of the US dollar against the Japanese yen and the yield spread of 2-year US and Japanese government bonds was higher than its correlation with other financial variables tracked by the company, with the US dollar against the Japanese yen last quoted at 156.72 yen.