Before the upper house election in Japan, many people sold yen. But now, the buying back of yen (after too much selling) seems to be mostly finished.
Yesterday, USD/JPY had a hard time going higher. It did go up once to 147.94 yen, but then fell again in the New York market.
Secretary Bessent said that “trade talks with Japan are going well” and also that “talks can still continue after the August 1 deadline.”
Also, U.S. long-term interest rates went down, so the dollar dropped to 146.31 yen.
After that, there was some buying again, including in other yen pairs. So, it seems like the buying back of yen is mostly done.
Because of political uncertainty and trade tariffs, the Bank of Japan may not raise interest rates soon.
So, people might start selling yen again.
Expected USD/JPY range: 146.10 yen – 147.40 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.