During New York trading hours, two important U.S. economic reports (ADP employment data and ISM non-manufacturing index) showed much weaker results than expected. This caused the U.S. dollar to fall against many currencies. It showed how U.S. tariffs are hurting the economy. The dollar had gone up the day before due to strong job data, but now it dropped from around 144.50 yen to 142.61 yen.
Also, President Trump said that talks with China are “very difficult,” which made markets more nervous. After seeing the weak ADP report, he said, “Chairman Powell is too late; we must cut interest rates now.” Because of the bad economic news, many people now expect the U.S. to lower interest rates at the June meeting. This is keeping the dollar weak against the yen.
However, since the U.S. jobs report is coming out tomorrow, there may be some temporary buying of the dollar, so please be careful.
Expected USD/JPY Price Range: 141.90 – 143.50 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.