In the Tokyo market, the USD/JPY went above 149 yen and stayed strong. But in the New York market, it suddenly dropped.
This drop happened after news came out that President Trump might remove Federal Reserve Chairman Powell. Because of this, the USD/JPY fell to 146.90 yen. Later, Trump said the news was not true, and the rate went back up to 148.37 yen. However, many people still have doubts, so the price is not going up easily.
Also, the U.S. June Producer Price Index (PPI) was a little lower than expected. This reduced the effect of the Consumer Price Index (CPI) from the day before. U.S. long-term interest rates also went down.
With Trump’s comments causing market confusion and some people slowly moving away from the U.S. dollar, the dollar may stay weak today as well.
Expected USD/JPY range: 146.70 – 148.50 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.