Yesterday, during Tokyo trading hours, Bank of Japan Governor Ueda said that if inflation spreads in the economy, they will respond by raising interest rates. Another Bank of Japan official, Koeda, also made comments supporting higher interest rates. However, the dollar-yen rose to 150.74 yen but did not reach the previous day’s high of 150.94 yen. Reports that President Trump would announce car tariffs added more uncertainty to the market.
In the market, many investors have long positions on the yen in Chicago futures trading. This means they expect the yen to rise, leading to stronger buying of the dollar-yen pair. However, even though the April 2 tariff activation and the fiscal year-end are approaching, there has not been much buying back of the dollar-yen. The increase in yen-long and dollar-short positions shows that many investors believe the dollar-yen will fall in the future.
If the dollar-yen cannot break above 151 yen, more selling may appear toward the weekend as traders confirm that the price is struggling to rise.
Dollar-Yen Expected Range: 150.90 – 149.90 yen
Note: This information does not guarantee profits. Make your own decisions before trading.