Because of the U.S. credit rating downgrade last weekend, the dollar may be sold at the start of this week.
If people expect Japan-U.S. trade talks to lead to a stronger yen, the dollar-yen rate may fall more than expected.
The market is watching closely to see if currency issues will be discussed in the third round of trade talks at the end of this week.
Many people already think that fixing the weak yen will be a topic. If it is not discussed, the dollar-yen rate may go back up to around 147 yen, which was the level before news about U.S.-South Korea talks.
But if currency issues are discussed while the dollar is already weak from the credit downgrade, the rate may fall to around 142 yen, which was the level after Japan’s Finance Minister Kato said on April 22 that they would talk about exchange rates.
Today’s expected USD/JPY range: 145.00 – 146.20 yen
This week’s expected USD/JPY range: 142.00 – 147.20 yen
Note: This information does not guarantee any profits. Please make your own decisions when trading.