Last weekend, many people sold the U.S. dollar, and this trend continued in the Tokyo market. The USD/JPY started around 149.73 and moved lower. Also, Japan’s stock market (Nikkei 225) dropped by over 1,500 points, making investors buy more Japanese yen as a safe choice. This pushed USD/JPY down to 148.73.
Although some people bought the dollar again, it dropped further to 148.71 when the European market opened. However, the price stopped falling at this level, showing strong support. Later, U.S. long-term interest rates increased, helping the dollar recover.
In the New York market, the Chicago PMI report was better than expected, making stock prices rise. This led to more risk-taking, and the yen weakened. As a result, USD/JPY increased to 150.26 before closing.
The market remains unstable, changing between risk-on and risk-off each day. Today, Japan’s central bank report and the U.S. ISM manufacturing data will be released, but traders may wait for tomorrow’s tariff announcement before making big moves. However, people who hold yen may sell it, which could push USD/JPY higher. It is also important to watch any statements from U.S. President Trump.
USD/JPY Price Range Prediction: 151.20 – 149.20
Note: This information does not guarantee profits. Please make your own decisions when trading.