Yesterday, during Tokyo trading hours, Bank of Japan Governor Ueda made positive comments about wages and consumer spending, which made the Japanese yen stronger. The USD/JPY fell from 148.37 to 147.58 but later recovered due to buying from European traders.
During New York trading hours, U.S. February PPI (Producer Price Index) was lower than expected, causing the dollar to fall at first. However, traders expected tariffs to have more impact later, so the dollar rose to 148.35 but could not reach Tokyo’s high and then weakened.
The New York stock market dropped because of concerns about tariffs and the U.S. budget deadline. Also, comments from U.S. Treasury Secretary Bessent about a weaker dollar pushed USD/JPY down to 147.42 at the close.
If the U.S. budget is not approved today, the government may shut down. However, since the budget has always been approved in the past, if it passes at the last minute, the dollar may rise again.
Since today is the end of the trading week, traders may adjust their positions. But concerns about tariffs, a U.S. recession, and a Bank of Japan rate hike may continue to cause USD/JPY selling.
USD/JPY Expected Range: 148.30 – 147.00
Note: The above information does not guarantee profits. Make your own decisions when trading.