Yesterday during Tokyo trading hours, former Foreign Minister Kono said that raising interest rates is needed to make the yen stronger. Because of this, the dollar-yen rate went down to 147.31 yen.
But the drop didn’t last long. During European trading, people started selling yen, and the rate went up to 147.88 yen. However, it did not reach the high of 148.08 yen set on the 4th, and then the price went down again.
During the New York session, the president of the Minneapolis Federal Reserve, Kashkari, said that two interest rate cuts this year are likely. This caused the dollar to weaken, and the dollar-yen rate briefly dropped below 147 yen. But it quickly went back up again.
Since there is no big news now, short-term traders are controlling the market. Tonight, the number of new unemployment claims in the US will be announced. This report is important after last week’s jobs data, but it probably won’t change the idea that the US might cut interest rates soon. So, the dollar-yen rate is expected to move between 146.60 and 148.00 yen.
USD/JPY Expected Range: 146.60 – 148.00 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.