In the Tokyo market, the U.S. dollar became stronger because President Trump’s comments made investors buy emerging market currencies. The USD/JPY rate rose to the 145 yen level. In the New York market, Trump announced a 25% tariff on Japanese goods. After this news, the Japanese yen became weaker, and USD/JPY moved up to the 146 yen level.
If Japan and the U.S. talk about stopping the weak yen before August 1, there is a chance that people will start buying yen again, and the yen could become stronger quickly. Until then, the USD/JPY rate is likely to stay strong.
If the price goes above 146.40 yen (the top of the Bollinger Band), the next target is the June 23 high of 148.02 yen.
However, there are some risks like the growing U.S. budget deficit, possible interest rate cuts by the U.S. central bank, and people moving away from the U.S. dollar. Because of these, the price may not rise for a long time.
Expected USD/JPY range: 145.40 – 146.40 yen
Note: This information does not guarantee profit. Please make your own decisions when trading