Yesterday, because of worries about tariffs, people sold the U.S. dollar and bought the Japanese yen, which is seen as a safe choice when markets are unstable. As a result, the USD/JPY rate dropped to 142.36 yen. During the long holiday, the rate had gone up to 145.92 yen, but it later returned to the same level as before the holiday. It could not go above the falling trend line, so the downward trend continues.
The U.S. central bank will meet early tomorrow. Most people expect interest rates to stay the same, and some believe they might go down later this year. This idea is already expected by the market. However, people are watching what Chairman Powell says, especially because President Trump is pushing for lower interest rates.
If Powell sounds like he is giving in to political pressure, people may lose trust in the U.S. dollar and sell it. If the rate cuts are only to support the slowing economy, the market may react differently.
Expected USD/JPY Price Range: 140.00 – 143.40 yen
Note: This information does not guarantee profit. Please make your own trading decisions.