The U.S. dollar went up after the U.S. GDP (economic growth data) was stronger than expected. Also, in the FOMC meeting, the U.S. central bank did not give in to political pressure to cut interest rates. Because of this, the USD/JPY rose to around 149.50 by the end of trading.
Today, there is a Bank of Japan meeting. It is expected that they may move toward raising interest rates again because the tariff agreement has been settled. However, the market has already started to expect this, so if the result is as expected, the USD/JPY may try to go above the important 150 yen level.
But around 150 yen, there are technical limits like the 200-day moving average and the upper line of the Bollinger Bands. So even if the price goes above 150 yen, it may fall back soon after.
Chairman Powell said that if rate cuts are delayed too much, it may hurt the job market. If tomorrow’s U.S. jobs data is worse than expected, the U.S. dollar may fall quickly.
In the end, the Bank of Japan is still likely to raise interest rates, and the U.S. central bank is expected to lower them. So, the 150 yen level is seen as a good chance to sell USD/JPY.
Expected USD/JPY range: 148.20 – 150.10 yen
Note: The above information does not guarantee profit. Please make your own decisions when trading.