Early in the morning, President Trump said that Japan was trying to weaken the yen. Because of this, investors started buying yen, making the yen stronger. Also, Japan’s stock market (Nikkei) dropped by almost 1,000 points, causing the USD/JPY rate to fall to 148.60 yen. Later, when the stock market recovered slightly, the USD/JPY rate went back up to around 149 yen.
However, stock prices in the U.S. and Europe also dropped, leading to a global stock market decline. Because of this, investors wanted safer assets and bought more yen, making the USD/JPY rate drop to 148.10 yen in New York trading. Later, when U.S. stocks recovered slightly, the USD/JPY rate went back up to around 149 yen. These up-and-down movements are happening every day.
On the same day, President Trump placed tariffs on Mexico, Canada, and China. In response, these countries said they would impose tariffs on U.S. goods. This raised concerns about harm to the world economy, leading to more yen buying. Also, Treasury Secretary Bessent said the U.S. government was focusing on lowering interest rates. This increased expectations for early rate cuts, putting pressure on the dollar.
Even though the USD/JPY rate moves up and down during the day, it is slowly going lower, and downward pressure is continuing.
USD/JPY Expected Range: 149.60 – 148.00
Note: The information above does not guarantee profit. Please make your own decisions when trading.