The U.S. government allowed chip exports to China again. This helped reduce tensions between the U.S. and China, making people sell the yen.
At the same time, the U.S. inflation number (CPI) was higher than expected, so people bought more dollars. Because of this, the USD/JPY rate went up to the 149 yen level.
The trend of a strong dollar and weak yen is getting stronger. If this continues, and if the U.S. Producer Price Index (PPI), which will be announced today, is also higher than expected, the USD/JPY rate could move up to the high 149 yen range.
However, there are still reasons why the dollar could fall. For example, President Trump is asking the U.S. central bank to cut interest rates, and people are worried about the U.S. government’s large debt.
Because of these risks, people might sell the dollar quickly if something unexpected happens. So, be careful when buying dollars at around the 149 yen level.
Expected Range for USD/JPY: 148.20 – 149.40 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.