Last week, the USD/JPY ended around 145.30. At the start of this week, the price rose to the 146 level in the Tokyo market because people expected good news from US-China talks.
When the European market opened, news came out that both the US and China would cut tariffs by 15%. This news was a big surprise, and the USD/JPY quickly jumped to the 148 level. The dollar kept getting stronger, and the USD/JPY reached 148.65 in the New York market.
The market did not expect such a big tariff cut, even though it is only for 90 days. Because of this, worries about the world economy getting worse became smaller. If the market stays calm, people might start to expect that the Bank of Japan will raise interest rates sooner.
The USD/JPY could keep rising, and it might go above 149 before the US-China leaders’ meeting at the end of the week.
USD/JPY Expected Price Range: 147.80 – 149.40
Note: This is not a guarantee of profit. Make your own decisions when trading.