In the Tokyo market after the holiday, USD/JPY rose to 150.30 as companies bought dollars for payments. However, reports about the U.S. strengthening semiconductor restrictions on China caused stock prices to drop, leading investors to buy the yen as a safe asset, pushing USD/JPY down to the mid-149 range.
Later, in the New York market, U.S. consumer confidence data was weaker than expected. This raised concerns about the U.S. economy slowing down, causing long-term interest rates to fall and the U.S. dollar to weaken. USD/JPY dropped to 148.67, the lowest since October 11 last year.
Investors are becoming more sensitive to weak U.S. economic data, especially with concerns about major policy changes under the Trump administration.
Yesterday, the 21-day moving average crossed below the 200-day moving average, forming a “Death Cross.” This is a technical signal that suggests a higher risk of further decline in USD/JPY.
USD/JPY Expected Range: 149.60 – 148.30
Note: The information above does not guarantee any profit. Please make your own decisions when trading.