In the Tokyo market, the U.S. dollar was sold first. After news came out that Israel may be planning to attack Iran’s nuclear facilities, investors became more careful and bought safe currencies like the Japanese yen and Swiss franc. As a result, the USD/JPY fell to 143.46 yen.
Also, there were expectations that the G7 Finance Ministers and Central Bank Governors Meeting, which started yesterday, might discuss correcting the weak yen. This idea also led to more selling of the dollar.
In the European market, USD/JPY went back up to the 144 yen level, but after the buying stopped, the price started to fall again.
In the New York session, the 20-year U.S. government bond auction had poor results. Because of this, U.S. government bonds were sold more. At the same time, all three major U.S. stock indexes dropped a lot. As a result, USD/JPY fell again to 143.29 yen.
This was a “triple weakness” – stocks down, bonds down, and the dollar down.
Because trust in the U.S. dollar is becoming weaker and there is still talk about correcting the weak yen, USD/JPY may continue to go lower.
USD/JPY Expected Range:142.00 yen – 144.00 yen
Note: The above is not a guarantee of profit. Please make your own decisions when trading.