During Tokyo trading hours, Economic Revitalization Minister Akazawa said, “Japan and the U.S. will closely discuss currency matters.” Because of this, many people expected more pressure from the U.S. for a stronger yen, and the USD/JPY rate fell to 142.25 yen. After a short recovery, it dropped again to 142.24 yen during the European market. The 142 yen level is now seen as strong support.
Later, in the New York market, U.S. long-term interest rates fell. Federal Reserve Board member Waller showed more concern about a possible recession than inflation and suggested an early interest rate cut. This caused U.S. long-term interest rates to fall again.
Because both dollar selling and yen buying are happening at the same time, the USD/JPY rate is likely to go lower.
Expected Range for USD/JPY: 144.20 – 141.60
Note: This information does not guarantee profits. Please make your own decisions when trading.