Last week, the US dollar went down after Moody’s lowered the credit rating of the United States. Then, people thought Japan and the US might talk about stopping the weak yen, so they started buying yen. But in the end, the meeting did not talk about exchange rates, so the yen got weaker again. Still, people stayed careful, so the dollar did not go up much.
Later, the US House of Representatives passed a big tax cut plan. This made people worry about more US debt. Also, a 20-year bond auction in the US did not go well, so the dollar dropped more. At the end of the week, news about a 50% tax on EU goods caused more dollar selling, and the dollar/yen rate fell to around 142.50.
This week, people may still worry about the US budget and new taxes on EU and Apple products. So, the dollar may continue to go down. Also, people still think Japan might try to stop the weak yen, so the dollar/yen rate may drop more.
Looking at the weekly chart, the dollar/yen made a “double top” around 160. The important support level is near 140.40, which is a strong line for now.
Today’s expected range for USD/JPY: 142.00 – 143.20
This week’s expected range for USD/JPY: 140.40 – 144.00
Note: This is not a guarantee of profit. Please make your own decisions when trading.