Yesterday, the Nikkei stock index fell sharply at the opening of the Tokyo market, causing USD/JPY to drop to 146.54. Later, as stock prices recovered, USD/JPY rose to the mid-147 range.
In overseas markets, reports that Ukraine might accept a temporary ceasefire and stronger-than-expected U.S. job data (JOLTS) pushed USD/JPY up to 148.11. However, after President Trump announced higher import tariffs on Canadian steel and aluminum (from 25% to 50%), stock prices fell, leading to risk-averse yen buying, which brought USD/JPY down to 147.03. Later, when Trump suggested he might cancel the 50% tariff on Canada, USD/JPY recovered to the upper 147 range. The market remains unpredictable.
Today, the key U.S. Consumer Price Index (CPI) will be released. While strong short positions on the yen may cause temporary yen selling, risk-averse movements are expected to limit USD/JPY’s rise in this uncertain market.
USD/JPY Expected Range: 148.30 – 146.60
Note: The above information does not guarantee profits. Please make your own trading decisions.