The USD/JPY started lower at 148.63 in the Tokyo market but rose to 149.63 due to higher U.S. interest rates. It continued to stay strong and reached 149.88 in the New York market. However, before reaching the important 150 level, selling pressure in the London market caused it to fall. As U.S. interest rates started to drop, the USD/JPY went back down to the 148 range.
There are concerns that new U.S. tariffs will slow down the economy and reduce consumer spending, which is pushing interest rates lower and limiting the dollar’s rise. Also, a “death cross” (a technical signal) has appeared, adding pressure for the USD/JPY to stay weak before the U.S. PCE Deflator report this weekend.
Expected USD/JPY Price Range: 149.60 – 148.00
Note: The above information does not guarantee profits. Make your own decisions when trading.