During Tokyo trading hours, Bank of Japan (BOJ) board member Takata showed support for continuing rate hikes, leading to nervous market movements at first, but yen buying gradually increased. In the New York market, USD/JPY fell to 151.25 but did not break the previous low of 151.24 set on the 18th, leading to some buying back. Additionally, the possibility of a 25% tariff on cars and other goods by the Trump administration limited further gains.
With mixed feelings of hope and concern about the U.S.-Russia talks on ending the Ukraine war, there is a tug-of-war between safe-haven yen buying and dollar strength due to U.S. inflation concerns. This is expected to keep USD/JPY moving without a clear direction.
However, the 200-day moving average near the 152.50 level is limiting gains, and overall, there is a higher risk of the pair moving lower.
USD/JPY Expected Range: 151.80 – 150.80
Note: This information does not guarantee profits. Make your own decisions when trading.