Over the weekend, the U.S. and the EU reached a trade agreement. This made the market feel calm, and many people started buying U.S. dollars. Also, both Japan and Europe promised to make large investments in the U.S. This helped support the dollar, and some traders who had sold dollars earlier also started to buy them back.
Tomorrow, two important meetings will start: one for the U.S. central bank (FOMC) and one for the Bank of Japan. Because of this, traders are adjusting their positions before the meetings.
Since the worry about tariffs is smaller now, it will be easier for both the U.S. and Japan to make decisions on their money policies.
Even if the policies don’t change this time, it is expected that the Bank of Japan may raise interest rates soon, and the U.S. may lower them. If these ideas are clearly said by the central banks or their leaders, then the yen may go up and the dollar may go down.
Dollar-Yen Price Range Forecast: 147.70 – 148.90 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.