In the Tokyo market after the New Year, USD/JPY started with buying for exchange settlements, rising to 157.82. However, the Nikkei Stock Average fell sharply on the first trading day of the year, which caused investors to avoid risk and buy the yen, keeping USD/JPY from rising further.
In the European market, USD/JPY went up to 157.96 and seemed likely to reach 158, but it suddenly dropped. This was because The Washington Post reported that ‘Trump is considering tariffs on important goods.’ This news led to lower interest rates and stronger selling of the dollar. Later, Trump denied this report, and the price recovered to 157.66, resulting in a back-and-forth movement.
Until the U.S. jobs report is released this weekend, USD/JPY is expected to stay in the range of 158.00 to 156.00, which started in the second half of last year.
Predicted Range for USD/JPY: 158.00 – 156.50
Note: The above content is not a guarantee of profits. Please make your own decisions when trading.