The USD/JPY started above 150 yen in the morning but dropped to 148.98 yen after weak U.S. economic data was released during New York trading hours. Later, stock prices recovered, and USD/JPY rose back to the mid-149 yen level by the market close.
Ahead of today’s tariff announcement, many traders have already reduced their positions. It is unclear whether the announced tariffs will be as bad as expected or less severe. However, since the market has already prepared for the worst-case scenario, a lighter tariff decision could be a surprise, leading to both USD and JPY selling.
At the same time, yesterday’s economic data showed both inflation and slowing growth, raising concerns about stagflation. This could limit how much USD/JPY can rise.
Overall, it may take more time to understand the full impact of the tariff decision on the market.
USD/JPY Expected Range: 151.10 – 148.30
Note: The above information does not guarantee profit. Please make your own decisions when trading.