At last week’s Bank of Japan meeting, the policy interest rate was raised by 0.25%, as expected. Before this announcement, President Trump said he wanted to avoid tariffs on China, which had already led to selling of the US dollar. As a result, the USD/JPY stopped falling at the upper 154 yen level.
Bank of Japan Governor Ueda hinted that future rate hikes would be gradual, which caused the USD/JPY to rise.
This week, the important FOMC meeting will be held, and it is expected that the US interest rate will remain unchanged. However, President Trump said he plans to request an immediate rate cut. If he makes any comments against the decision to keep rates unchanged, the US dollar could weaken further.
In any case, the market continues to react strongly to Trump’s comments, and it may take more time to understand the overall trend.
Today’s USD/JPY forecast: 156.40–155.50 yen
This week’s USD/JPY forecast: 157.00–153.80 yen
Note: The above information does not guarantee profits. Please make your own decisions when trading.