Last week, the Dollar/Yen dropped to the lowest level since October last year, 146.54 yen, due to strong yen buying caused by a sharp drop in New York stocks as a result of the trade war with Trump’s tariffs. After that, buying to adjust positions pushed the price back up to the low 149 yen range. Over the weekend, after the U.S. stopgap budget was approved and a ceasefire in Ukraine seemed closer, market sentiment improved, and the price moved up to the 149 yen level, ending on a strong note.
In the spring wage negotiations, the wage increase reached around 5%, continuing from last year, and with President Trump’s comments encouraging a weaker yen, it is expected that the Bank of Japan will show a positive stance toward interest rate hikes at its meeting.
Additionally, during the FOMC meeting, as the U.S. economy slows and stocks fall, the impact of tariffs will be assessed. If early interest rate cuts are indicated, further dollar selling could occur.
As a result, the difference in interest rates between Japan and the U.S. is likely to lead to stronger selling of the Dollar/Yen.
Today’s Dollar/Yen forecast range: 149.20 yen to 148.00 yen
This week’s Dollar/Yen forecast range: 150.00 yen to 144.00 yen (76.4%)
Note: The above information does not guarantee profits. Make your own decisions when trading.