Yesterday during Tokyo trading hours, Bank of Japan board member Tamura said that they will raise interest rates at the right time. Because of this, USD/JPY dropped to 144.61. However, he also said that they need more information to confirm inflation will reach 2%. This made people think it will take more time to raise interest rates, so the yen weakened and USD/JPY went up to 145.95 during New York trading. But it did not reach 146. When the new home sales report in the U.S. was weaker than expected, people sold the U.S. dollar, and USD/JPY went down again to 145.11. This shows it is hard for USD/JPY to go much higher.
The ceasefire agreement supports yen weakening, but there are also concerns about the U.S. budget deficit and the effect of tariffs on the economy. Because of this, many people are watching U.S. economic data closely.
Today, depending on reports like GDP and PCE, the market may move in the short term, but there is no clear direction yet. So the price is likely to change only a little for now.
USD/JPY expected price range: 144.40 – 145.80
Note: The information above does not guarantee profits. Please make your own decisions when trading.