As expected, the Bank of Japan kept interest rates the same. The central bank mentioned global uncertainty but also showed concern about rising prices, suggesting that interest rate increases could continue. Because of this, the USD/JPY rate fell from 150.02 to 149.15. However, before the FOMC meeting, the rate went back up to 150.14.
The FOMC also kept interest rates unchanged as expected. However, they confirmed their plan for two rate cuts this year and warned about higher inflation and slower economic growth. This made investors sell the dollar, causing the USD/JPY rate to drop from 150.00 to 148.61 by the end of the day.
Both Japan and the U.S. mentioned trade uncertainty but did not take strong action. The Bank of Japan is still open to raising interest rates, while the U.S. Federal Reserve is expected to lower rates later. Until the effects of April’s trade policies become clear, the dollar is unlikely to fall too quickly, but the downward trend may continue.
USD/JPY Price Range Prediction: 149.30 – 148.00
Note: This information does not guarantee profits. Please make your own decisions when trading.