Last week, worries about U.S.-China trade problems caused people to sell the U.S. dollar. Also, weak U.S. manufacturing data pushed the dollar down to 142.38 yen. However, it did not fall below the previous low of 142.12 yen and then went back up. When U.S. job data (ADP) was worse than expected, the dollar dropped again but stopped at 142.54 yen and bounced back. Later, a phone call between U.S. and Chinese leaders gave hope for better trade relations, and the dollar became stronger. At the end of the week, strong U.S. job numbers helped the dollar rise above 145 yen.
This week, the U.S.-China relationship will continue to affect the market. President Trump is still asking for lower interest rates, which makes people unsure about the dollar. The U.S. will release inflation data (CPI), and people are watching to see if tariffs are causing prices to rise.
If inflation stays low, people may expect interest rate cuts, and the dollar could fall.
Last week, the Bank of Japan’s Governor Ueda showed support for raising interest rates, which could also push the dollar down later in the week, even if it rises at the start.
Today’s USD/JPY expected range: 144.00 – 145.40
This week’s USD/JPY expected range: 142.50 – 146.10
Note: This information does not guarantee profits. Please make your own decisions when trading.