Early in the morning, President Trump said that the US and Japan reached an agreement on a 15% tariff. At first, the USD/JPY dropped and went down to the low 146 yen range. But then, news came out that Prime Minister Ishiba might step down in August. This made the USD/JPY go back up.
Because people think this deal will help global trade talks move forward, many bought the US dollar. As a result, USD/JPY rose to 147.21 yen. After that, the Japanese yen got stronger again, and USD/JPY fell to 146.11 yen. In the end, even though there was an agreement, the price moved only about 1 yen up and down, and there was no clear direction.
As part of the deal, Japan promised to invest $55 billion. This may help reduce Japan’s trade surplus and could lead to more selling of the yen in the future.
On the other hand, if tariff talks in other countries finish soon, market worries may go down. If that happens, the US central bank might lower interest rates, and the Bank of Japan might raise them. This could make people sell the US dollar and buy the yen.
In short, the timing of these changes will decide which direction USD/JPY moves. For now, people are taking more risks, so selling of the yen may continue.
USD/JPY Expected Range: 146.10 – 147.40 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.