When the Tokyo market opened, Bank of Japan Governor Ueda said that interest rate hikes would continue. This made the dollar fall to 142.12 yen.
Later, Japan’s Ministry of Finance said it would change its bond issuance plan to respond to rising long-term interest rates. As long-term interest rates went down, the yen became weaker.
Also, the day before, President Trump said he would extend the higher tariffs on the EU. This made investors feel safer, and U.S. stock prices went up a lot after the holiday.
Because of the weaker yen and Trump’s tariff news, people started buying dollars again, and the dollar rose to 144.45 yen.
The dollar went up more than 2 yen in one day, regaining about two-thirds of the 3-yen drop from last week.
Even though the bond plan changed, the Bank of Japan will likely continue raising rates. The tariff news may also keep some risks in the market.
Overall, this was just a short-term correction. After this correction ends, the dollar may fall again against the yen.
USD/JPY Expected Range: 143.50 yen – 144.70 yen
Note: This information does not guarantee any profits. Please make your own decisions when trading.