Last week, the USD/JPY dropped at first because a U.S. economic report showed weaker-than-expected consumer confidence. However, the dollar later strengthened after the Trump administration announced new tariffs on the EU and hopes for a Ukraine peace agreement increased. Additionally, Japan’s February inflation report was lower than expected, reducing the chances of an early interest rate hike by the Bank of Japan. As a result, the USD/JPY rose to nearly 151 yen by the end of the week.
This week, key U.S. economic reports, including job data and ISM, will be released. If the current trend continues, the dollar may strengthen. However, if the U.S. Federal Reserve delays interest rate cuts while market uncertainty grows due to Trump’s tariffs and the Ukraine situation, the yen could strengthen instead.
Last week, a technical signal called the “death cross” appeared in moving averages. In the long run, the Federal Reserve is still expected to cut rates, and the Bank of Japan is expected to raise rates. Because of this, traders may prefer selling USD/JPY when it rises.
Today’s USD/JPY Expected Range: 150.90 – 150.20 yen
This Week’s USD/JPY Expected Range: 151.50 – 147.00 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.