Last week, USD/JPY went down because President Trump said he might raise tariffs on Japanese cars.
He also said the U.S. central bank should cut interest rates a lot, which pushed the rate down to 142.68 yen.
Later, strong U.S. factory data and job openings data helped USD/JPY rise again to the 144 yen level.
Then, very strong U.S. job data came out, and the rate went up further to 145.23 yen.
But because a new Trump tax cut law was passed in the U.S., many people started to worry about a bigger U.S. budget deficit. This worry stopped the dollar from going up more.
This week, on July 9, the break on tariffs will end.
There may be more pressure on Japan to reduce its trade surplus with the U.S., and that could push the yen higher (meaning USD/JPY could go down).
USD/JPY hit a high of 148 yen in both May and June, but then it dropped — this made a “double top” pattern.
The key support line for this pattern is around 142 yen. If the price goes below this level, it might fall toward 140 yen.
Today’s USD/JPY expected range: 144.00 – 145.20 yen
This week’s USD/JPY expected range: 142.00 – 145.50 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.