At yesterday’s Bank of Japan meeting, there were no strong or surprising comments, so the price of the dollar stayed below 145 yen.
Later in New York, U.S. retail sales were weaker than expected, and the dollar fell to 144.35 yen. But when the chance of the U.S. joining the Iran conflict increased, the dollar was bought as a safe asset and went above 145 yen, reaching 145.37 yen. The dollar became stronger overall. Also, difficult trade talks between Japan and the U.S. made people sell the yen.
The U.S. central bank (FOMC) will meet soon. People expect no change in interest rates, but they will watch for hints about future rate cuts. If the central bank shows signs of lowering rates because of weak U.S. data, the dollar may fall. But the Middle East problem could still keep the dollar strong, so the fall may be small.
If the market thinks rate cuts will not happen soon and the price rises above a key level, the next target could be around 146.30 yen.
USD/JPY Expected Range: 144.00 – 145.60
Please note: The above is not a guarantee of profit. Make your own decisions when trading.