In the Tokyo market, USD/JPY fell to 148.87 yen. This was influenced by comments from Bank of Japan board member Adachi, but the dollar was quickly bought back after he made cautious remarks about raising interest rates. Even though U.S. long-term interest rates fell from the European to the New York market session, the buying pressure on the dollar remained strong, pushing USD/JPY back up to 148.80 yen. However, despite continued dollar buying since the beginning of the week, it didn’t reach the key 150-yen level.
With the rise in the U.S. stock market yesterday, today’s Nikkei index is expected to increase as well. This “risk-on” environment could lead USD/JPY to test the 150-yen level again. If it fails to break above today, there’s a chance that traders will start to unwind their positions.
If it successfully breaks above, an increase toward the 151-yen level, which aligns with the 200-day moving average, could come into view.
USD/JPY Forecast Range: 149.90 yen to 148.60 yen
Please note that the above information does not guarantee profits. Make sure to make your own decisions when trading.