After the U.S.–Japan tariff talks ended with an agreement, some people thought the Bank of Japan might raise interest rates. Because of this, the USD/JPY price fell to 145.86 yen in the Tokyo market.
However, progress in trade talks around the world made stock prices go up in many countries. This created a “risk-on” mood, meaning investors felt safe to take risks. As a result, the yen became weaker and the U.S. dollar became stronger. USD/JPY rose to 147 yen in the New York market.
At the same time, President Trump put pressure on the U.S. central bank (Federal Reserve), which made some people lose trust in the dollar. Also, concerns like the growing budget deficit in the U.S. caused some people to feel worried (“risk-off” mood). Because of this, it is hard to say which direction USD/JPY will move next.
In the short term, the weak yen trend may continue due to the “risk-on” mood. USD/JPY is expected to stay strong. But, be careful of a possible drop in price.
Expected range for USD/JPY: 146.30 – 147.50 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.