After the Federal Open Market Committee (FOMC) meeting, the US dollar weakened because the results were not as strong as expected. Since Tokyo was on holiday, USD/JPY dropped to 148.18 as selling continued. The market started weak, and the Bank of Japan’s decision to keep raising interest rates also led to more yen buying.
In the European market, the US dollar recovered, pushing USD/JPY up to 148.78. In the New York market, strong US economic data helped USD/JPY rise further to 148.96. As a result, both the US dollar and the Japanese yen were strong, creating a tug-of-war in the market.
Now that the major US and Japan policy meetings are over, attention is on Trump’s statements. He is pressuring the Federal Reserve to cut interest rates, but Chairman Powell is being careful. However, based on past events, Trump usually forces his way, so the market expects the US dollar to weaken.
USD/JPY Expected Range: 149.00 – 148.00
Note: This information does not guarantee profits. Make your own decisions before trading.