Yesterday, before the Japan-U.S. financial policy meetings, traders adjusted their yen positions, pushing the USD/JPY up to 149.93. However, it failed to reach 150 and then lost strength, confirming strong resistance at higher levels.
Today, the Bank of Japan (BOJ) is expected to keep interest rates unchanged. The focus will be on comments from BOJ Governor Ueda. However, due to uncertainty about the global economy caused by Trump’s tariffs, he is unlikely to make clear statements about the timing or pace of rate hikes. As a result, the USD/JPY movement may be limited.
Tomorrow’s early morning FOMC meeting will focus on the pace of future U.S. interest rate cuts. However, similar to the BOJ, the U.S. Federal Reserve (FRB) is likely to wait and see how Trump’s tariffs affect the economy before making major moves.
In the long term, the U.S. is expected to cut interest rates, while Japan is likely to raise them. Even if there are short-term fluctuations, the downward trend for USD/JPY is expected to continue.
USD/JPY Price Range Forecast: 150.00 – 147.80
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