Before Chairman Powell’s speech at Jackson Hole, investors bought back yen-related currencies in the European and U.S. markets, and the dollar-yen also went up. During New York trading hours, after the U.S. PMI result, the dollar-yen rose to around the top of the August range at 148.50.
On August 1, the weak U.S. jobs report caused the dollar to fall. Many expected interest rate cuts from the Federal Reserve, and there was almost no buying back of the dollar after the drop.
Now, the market expects Powell to show a positive stance toward cutting rates at Jackson Hole. But, because of inflation concerns from tariffs and upcoming jobs and inflation data, Powell may stay careful about cutting rates. If that happens, the dollar could quickly rise again.
In the longer run, however, the Fed is still expected to cut rates, so the selling trend of the dollar will not change. After this rebound, the plan is to sell again when the price goes up.
Dollar–Yen expected range: 146.20 – 149.00 yen
Note: This is not a guarantee of profit. Please make your own trading decisions.