Last week, the Japanese yen strengthened as expectations of an early interest rate hike by the Bank of Japan grew. However, at the start of this week in the Tokyo market, there was buying of cross-yen pairs, mainly the euro, leading to some yen selling.
In Tokyo, USD/JPY rose to 148.85, following last week’s momentum. Later, it climbed over 1 yen to 149.87 in the European and U.S. markets. In New York, the pair briefly dropped to the lower 149 yen range but was supported by yen selling in cross-yen pairs.
This week, Tokyo’s Consumer Price Index (CPI) will be released, and it is expected to further increase speculation about an early rate hike by the Bank of Japan. After the yen’s recent strengthening settles, USD/JPY may test lower levels again.
Today’s USD/JPY Forecast Range: 150.20 – 149.20
Note: This information does not guarantee profits. Make your own decisions when trading.