Yesterday in the early morning (Tokyo time), news said that the United States and China reached a trade agreement. Because of this, the USD/JPY rose to the 145 yen level.
Later, there was news that the US Supreme Court allowed the extension of the stop order on Trump’s tariffs. This pushed USD/JPY down to 144.65 yen. But because people still hoped for the agreement, the US dollar stayed strong.
When the New York market opened, there was more news saying that the agreement would be completed when President Trump and President Xi Jinping signed it. USD/JPY then went up to 145.46 yen.
However, when the US May CPI (Consumer Price Index) was announced, the result was lower than expected compared to the previous month. USD/JPY then dropped to 144.33 yen. After that, it rose again above 145 yen but could not keep going up. In the end, USD/JPY fell again to around the middle of the 144 yen level.
The strong fear of high inflation from tariffs became smaller, but today the PPI (Producer Price Index) will be announced.
President Trump also asked the Federal Reserve (FRB) again to cut interest rates by 1%. Depending on the PPI result, USD/JPY may go down further.
USD/JPY Forecast Range: 142.00 – 145.40 yen
Note: The above information does not guarantee profit. Please make your own decisions when trading.