At the Bank of Japan (BOJ) meeting, the decision was made to keep the policy interest rate unchanged. Some had expected a 0.25% rate hike, so after the announcement, USD/JPY rose by over 1 yen. Later, BOJ Governor Ueda expressed a cautious stance on raising rates, causing further yen weakness and pushing USD/JPY into the 157 range.
In the New York market, strong U.S. data, such as GDP, led to more buying of the dollar. As a result, USD/JPY reached a high of 157.90 for the day. Both dollar buying and yen selling are currently strong.
The interest rate gap between the U.S. and Japan is drawing attention again, and this momentum seems to continue. If today’s U.S. PCE deflator (inflation data) exceeds expectations, the dollar may rise further.
However, there are risks, such as the U.S. debt ceiling issue and actions by former President Trump, which could lead to a sudden drop in the dollar. Caution is advised.
USD/JPY Predicted Range: 158.30–156.00
Note: The above information does not guarantee profits. Make your own decisions when trading.