After Japan’s GDP report, expectations of an early interest rate increase by the Bank of Japan led to yen buying. As a result, the dollar-yen rate dropped to 151.24 yen in the morning.
Later, yen strength adjustment caused the dollar-yen rate to rise nearly 1 yen to 152.22 yen. However, since expectations of an early interest rate hike in Japan remain, yen buying increased again after the adjustment.
After the holiday, the dollar-yen rate fell to 151.53 yen in the New York market. But as U.S. long-term interest rates rose, the dollar-yen rate went back above 152 yen by the end of the day.
Today, Japan will release its January trade balance. If Japan’s trade surplus with the U.S. is too large, President Trump may take action against the weak yen.
Also, Japan’s CPI (inflation data) will be released this weekend, which may limit how much the dollar-yen rate can rise.
However, because U.S. long-term interest rates are also rising, the dollar is unlikely to fall much. The dollar-yen rate is expected to move in a sensitive and unstable manner.
Dollar-Yen Price Range Forecast: 152.40 – 151.00 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.