In the Tokyo market yesterday, the USD/JPY fell as investors sold the US dollar due to lower US long-term interest rates and bought the Japanese yen. Although Japan’s long-term interest rates rose, BOJ Governor Ueda avoided commenting directly, which the market took as acceptance of the increase.
At the same time, Japan’s Nikkei stock index dropped sharply, leading investors to avoid risks and buy more yen. In the New York market, all three major US stock indexes also fell, causing further declines in yen-related pairs. As a result, USD/JPY dropped to a low of 149.40 yen and closed near this level.
Today, Japan’s January CPI (Consumer Price Index) is expected to rise compared to the previous month. If the actual result is higher than expected, it could increase expectations of a rate hike, leading to more yen buying.
The key support level is 143.65 yen, the low from December last year, which is seen as strong resistance and may temporarily stop further declines.
USD/JPY Forecast Range: 150.50 – 148.70 yen
Note: This information does not guarantee any profits. Make your own decisions when trading.