After the news that the US military attacked Iran, the USD/JPY price went up in the Tokyo market. In the European market, the price reached 148.02 yen but soon went down again. This shows that it is difficult for the price to stay above 148 yen.
Later, some members of the Federal Reserve gave comments suggesting they may lower interest rates in the future. This made people sell US dollars. Also, President Trump said he does not plan to strike back at Iran. Because of this, traders closed their long positions (buying dollars), and the price went down to around 146 yen.
Now, traders are less worried about the Middle East situation, and they are focusing again on the Federal Reserve’s policies. Many people are waiting for Chairman Powell’s speech today in Congress. If he says anything different from the strong comments made in last week’s Federal Reserve meeting, the dollar may fall more.
USD/JPY expected price range: 145.40 – 147.00 yen
Note: The above information does not guarantee profit. Please make your own decisions when trading.