In the early morning of the Tokyo market, the U.S. International Trade Court ordered to stop Trump’s tariffs. This news made the U.S. dollar stronger overall. The USD/JPY went above the previous day’s high of 145.07 yen and rose to 146.28 yen. The Nikkei stock index also dropped a lot, so both the stronger dollar and weaker yen moved together.
However, in the European market, the USD/JPY started to fall. Many people still believe the tariffs will continue, so they sold dollars. In the New York market, weak U.S. economic data and the higher court’s decision to pause the lower court’s ruling also made the dollar weaker. As a result, the USD/JPY dropped to 143.97 yen.
It looks like the legal fight over the tariffs will continue. Many people in the market believe the tariffs will stay. Because of this, people may buy yen as a safe option, and the USD/JPY might not rise much more.
If the USD/JPY falls below the bottom of the Ichimoku cloud (around 143.80 yen), there may be stronger pressure for the dollar to go lower.
Expected USD/JPY Range: 143.30 yen – 144.70 yen
Note: The above is not a guarantee of profit. Please make your own decisions when trading.