This week, important U.S. economic reports, such as the ISM report and employment report, will be released. However, the biggest focus is on the U.S. car tariffs starting on April 2.
If President Trump shows a softer stance at the last minute, stock prices may rise, and both the yen and the dollar may weaken. If the expected tariffs take effect as planned, interest rates may rise, stock prices may fall, and investors may buy both the yen and the dollar as safe assets.
Since the market has already prepared for the worst outcome, the dollar-yen exchange rate might fall after the tariffs are implemented because uncertainty will decrease. In any case, the market is expected to be very volatile, and it will take time to understand how inflation and the economy will be affected.
Last week, the dollar-yen exchange rate lost momentum before reaching the 200-day moving average, confirming a short-term peak. If the price cannot go above this level, it may move lower.
Today’s USD/JPY Forecast Range: 150.40 – 149.50
This Week’s USD/JPY Forecast Range: 151.60 – 148.40
Note: The information above does not guarantee profits. Please make your own trading decisions carefully.