In the Tokyo market at the start of the week, the USD/JPY rose because of regular corporate demand for dollars. Also, the Nikkei stock index went up, so investors felt more positive (this is called a ‘risk-on’ mood), which caused more selling of the yen and helped push USD/JPY higher.
In the European market, stocks were also strong, and USD/JPY rose to the upper 147 yen level. Later, in the New York market, the U.S. ISM non-manufacturing index came out lower than expected, and the USD/JPY fell back to 147.31 yen. But because the overall mood remained positive, USD/JPY went up again and ended around 147.70 yen.
Since there were many important events last week, and not much big news this week, the market feels more stable. This positive mood may continue for now, and USD/JPY is expected to stay steady. However, if the U.S. moves more toward cutting interest rates, it may be hard for USD/JPY to go much higher.
Expected USD/JPY price range: 147.20 – 148.20 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.