At the end of last week, President Trump said he was not happy with Japan about car trade. Because of this, many people sold the U.S. dollar in the Tokyo market on Monday. The USD/JPY rate first went up to 144.76 yen due to month-end buying, but then fell to 143.79 yen. It did not fall as low as last week’s low of 142.76 yen, so it later went back up to around 144.50 yen.
In the New York market, both Trump and Treasury Secretary Bessent said the Federal Reserve Chair Powell should cut interest rates. This made the U.S. dollar weaker. USD/JPY dropped to around 144 yen, but since the U.S. stock market went up for three days in a row, people started buying the dollar again. This helped support the dollar.
Now that the Middle East situation is calmer, people are focusing again on the U.S. economy, interest rate policies, and trade talks. In particular, many people are waiting to see the U.S. jobs report this weekend. If the report is weak, people may expect a rate cut again, and USD/JPY could fall further.
Expected USD/JPY range: 143.30 – 144.60 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.