Last week, the new tariffs were tougher on Japan than expected, so many thought the yen would get weaker. However, because people were worried about a global economic slowdown, they bought yen as a safe choice.
At the same time, the tariffs also caused problems for the US economy. This led to a big drop in US stock prices and the US dollar. As a result, USD/JPY fell nearly 6 yen from the high point.
By the weekend, some people started buying dollars again, but because of the ongoing trade war, it is still hard for the dollar to go up much.
However, at the end of last week, President Trump said he might reduce tariffs on Vietnam. This shows there may be chances for future changes or removal of tariffs through talks with different countries.
This week, the market is likely to move up and down depending on what Trump says. Overall, we think the USD/JPY will slowly move lower.
Today’s USD/JPY forecast range: 147.40 – 146.30
This week’s USD/JPY forecast range: 148.70 – 145.00
Note: This information is not a guarantee of profit. Make your own decisions when trading.