Yesterday, the Japanese yen strengthened because the Bank of Japan’s deputy governor showed support for raising interest rates, and wage increase demands in Japan reached the highest level in 32 years. This caused the USD/JPY rate to drop to 147.31.
Later, the U.S. Secretary of Commerce mentioned the possibility of delaying tariffs on all U.S-Mexico-Canada Agreement (USMCA) products. This led to buying of the Canadian dollar and other yen-related currencies, pushing USD/JPY up to 148.39. However, the U.S. dollar remained weak and closed below 148.
Today, the U.S. job report will be released, but its impact on the Federal Reserve’s policy is expected to be small. With uncertainty caused by changing statements from President Trump, the market could move in both directions before returning to its previous level.
USD/JPY Price Range Forecast: 148.80 – 146.90
Note: The above information does not guarantee profits. Please make your own decisions when trading.